The consumer price inflation fell for the 5th consecutive month to 5.52 percent in October, driven largely by base effects, while whole price index touched a five-year low of 1.8 percent in the same month.

However, Rajan said: "A change in the monetary policy stance at the current juncture is premature. However, if the current inflation momentum and changes in inflationary expectations continue, and fiscal developments are encouraging, a change in the monetary policy stance is likely early next year, including outside the policy review cycle." On the new monetary policy framework, which would involve setting of a formal inflation target and accountability to deliver on the same, Rajan said talks with the government have progressed well and the details will be announced soon.

"The government has indicated that it is comfortable in setting a target of 4 per cent, plus or minus 2 per cent, as suggested by a number of committees, including the Urjit Patel committee for inflation beyond 2016," he said.