India’s central Bank, the Reserve Bank of India (RBI) is not likely to change the key interest rates in the country during its upcoming policy review meeting on Tuesday.

The central bank continues to be concerned by the high rate of inflation in the country. It has increased its interest rates thirteen times since March 2010, in order to control the double digit inflation, which has remained high despite the tightening measures.

In recent months, the food inflation has fallen to negative, bringing down the headline inflation but it still remains high. There have been indications from the central bank that it might reverse the cycle of rate increases in 2012 as the inflation comes under control and economic growth is stalled by low liquidity in the market.

According to some, the RBI might cut the cash reserve ratio (CRR) to allow banks to relieve tight liquidity and give a ding of relief to the markets and boost optimism. The move will bring more liquidity into the banking system, which as been lower than RBI's target of 1 percent surplus or deficit in terms of aggregate deposits.

According to the latest data, the country’s headline inflation slowed to a two-year low of 7.47 percent in December