The fourth bi-monthly monetary policy review was held in the backdrop of improving inflation dynamics — WPI inflation had dropped to a 5-year low in August.More importantly, correction in vegetable prices, subdued crude oil prices, remarkable stability in rupee, and moderation in rentals, had fanned expectations that CPI inflation would move towards 6% levels by November 2014, with the likelihood of it undershooting RBI’s near-term target of 8% in January 2015 by a significant margin.

Source - http://www.financialexpress.com