The inflation number may have come lower due to lingering of the transitory effect that has kept it low since November, Governor Urjit Patel said.
Note ban announced last year hasn’t affected the economic growth of the country, the RBI said, while citing "surprises" like dip in inflation as well as GDP growth for maintaining status quo on policy rates.
Governor Urjit Patel gave out numbers to support the claim including resilience in the cash-dependent mining and quarrying, rural wages continuing to be elevated and sturdiness in other sectors in the second half of last fiscal 2016-17.
The inflation number may have come lower due to lingering of the transitory effect that has kept it low since November, he said, adding it could also be due to supply glut conditions in respect of pulses, cereals and vegetables.
Deputy Governor Viral Acharya said it was lack of clarity in the narrative, where there have been "surprises" in dip in inflation to 3 per cent in April and the revision in growth to 6.1 per cent by CSO.