The Reserve Bank of India (RBI) may consider revising its key interest rates in the month of December on slowing inflation.

C Rangarajan, chairman of the Prime Minister's Economic Advisory Council (PMEAC) has said that he expects the economic growth in the country to be in the range of 7.5-8 per cent and he puts the figures at 7.8 or 7.7 per cent.

The country's Gross Domestic Product (GDP) has grown at 7.7 per cent in the first quarter. The PMEAC has still not revised its estimate of 8.2 per cent for year, but Rangarajan had already decreased the estimation to eight per cent some time earlier. He expected the economic growth at 7.9 per cent in the second quarter and then 8.3-8.4 per cent in the third and fourth quarters.

The Reserve Bank of India (RBI) increased its repo rate by 25 basis points to 8.5 percent few weeks ago. The central bank has raised its key benchmark rates 13 times since March 2010 causing the growth in the country to slowdown. Market analysts were earlier supportive of the stance to some extent but over the time, they have been frustrated with the rigidity and look at the raising of the rates with dismay because of it has been largely ineffective in tackling inflation.

Most economists agree that the government has little choice and understand that the government is not supportive as it has been unable to address pressure points, such as supply bottlenecks in food. The RBI is expecting the annual inflation to fall to 7 percent by March and assures analysts that further rate hikes will not be made if the inflation moderates as per estimations the central bank.