At one of the customary premonetary policy meetings with industry, former Reserve Bank of India governor Duvvuri Subbarao wanted to know how many of those present would benefit from an interest rate cut. Almost all hands went up. The next question was how many would pass on the lower cost to customers. Almost no one raised their hands. Subbarao kept interest rates unchanged. The voice of industry, which is always seeking a cut in the cost of funds, is getting louder again,thanks to both consumer and wholesale price readings dropping to record lows in September. It's natural that governor Raghuram Rajan, who has made it his mission to bring inflation as measured by the consumer price index permanently under 6 per cent, will be under greater pressure to cut rates.

Source - http://economictimes.indiatimes.com