MUMBAI: Following the Reserve Bank of India's unscheduled rate cut in January, expectations of another cut remain more subdued going towards the central bank's policy review scheduled for Tuesday.

RBI Governor Raghuram Rajan in mid-January cut the repo rate at which it lends to commercial banks by 25 basis points to bring it down from eight percent to 7.75 percent. It was the first reduction in almost two years.

Rajan then said further easing of rates would depend on "data that confirm continuing disinflationary pressures."

"Also critical would be sustained high quality fiscal consolidation as well as steps to overcome supply constraints and assure availability of key inputs such as power, land, minerals and infrastructure," he added.

While retail inflation slipped to 5 percent in December, the Wholesale Price Index inflation remained at a near zero level.

Regarding the government's fiscal deficit-control target of 4.1 percent of the GDP by March, data showed Friday that the deficit has exceeded the budget estimate in the first nine months of the fiscal, though on the same day the government recovered ground somewhat by earning over 22,000 crore from disinvestment in Coal India.

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