On Tuesday, Mr. Subir Gokarn, who is Reserve Bank of India's deputy governor, warned that inflation has gone above the comfort zone of Reserve Bank.

He further said that the assessment of the current scenario India about inflation is nor reassuring. At a private equity conference, he warned that as the current inflation rate is well above the comfort zone, it is cause for concern at RBI.

He commented that they have nearly completed the normalization of monetary policy and they will take further action, after getting the data on inflation and growth. He said further that RBI is considering the drastic steps to tackle inflation.

He said that the govt. is prepared to rein in inflation despite the indications, that if the drastic steps are taken, growth is bound to be affected.

On November 2, when RBI is scheduled for next policy review, it is certain that there will a hike in rate of interest. This year, RBI has already hiked the interest rates 5 times. He further said that if there are signs of disruption, only then the central bank will respond to capital flows.