'There are indications of inflation firming up by the end of the year due to the waning base effect of last year, increase in commodity prices, delayed progress of monsoon potentially driving up food prices,' it said.

Accordingly, analysts expected status quo on key policy rates, even as industry has been seeking a cut in interest rates to reduce their cost of borrowing.

'The real challenge for the RBI is to continue the boost to aggregate demand in the near term, while withdrawing the large liquidity injected into the system to contain inflationary pressures in the medium term,' said global consultancy Goldman Sachs.