Inflation pressures easing: RBI head

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India's growth is getting more broad-based and inflationary pressures are easing and the central will calibrate policy action to the evolving growth-inflation dynamics, the Reserve Bank of India (RBI) governor said on Friday.

The benchmark 10-year bond yield fell 3 basis points after the comments. The RBI is expected to raise key rates by 25 basis points at its Sept 16. policy review, after raising its lending rate by 100 basis points since March.

"Going forward, the Reserve Bank will calibrate policy action to the evolving growth-inflation dynamics," Subbarao said in a speech at a conference in the southern city of Bangalore.

"Given the uncertainty in the world and the lags in monetary transmission, it is not possible to offer more precise guidance," he added.

The food inflation eased and fuel inflation was unchanged in the year to Aug. 14, data released on Thursday showed, and policy makers hope good monsoon rains will help cool food prices.

Controlling prices must top the government's agenda, the head of the ruling Congress Party said, in the face of popular discontent with price rises affecting hundreds of millions of citizens who live on under $1.25 a day.

The headline inflation in July slowed more sharply than expected, after staying in double digits since March, but is still the highest among the G20 major economies.

The RBI in its review in July had said demand-side factors would continue to keep up pressure on inflation and its balance of policy stance has moved to controlling inflation from supporting growth in Asia's third-largest economy.