Reserve Bank of India Governor Raghuram Rajan has said that the economy is in the midst of recovery though there are certain areas of weakness. The RBI Governor said this while addressing a press conference after announcing the fifth bimonthly monetary policy. He expressed concern over farm growth and retail inflation, but remained neutral on services sector. He saw some ray of hope with a rise in the factory output growth. On being questioned regarding whether there was a change in the RBI's outlook, Rajan said that RBI is still accommodative and at the same time vigilant.<br/><br/>Rajan said that the Reserve Bank will use the space for further accommodation, when available, while keeping the economy anchored to the projected disinflation path that should take inflation down to 5 per cent by March 2017.<br/><br/>Rajan also expressed unhappiness that only a few banks had cut their lending rates and urged more banks to transmit the positive measures taken by RBI. He also dismissed bankers' claims that the cost of funds remained too high.<br/><br/>Regarding the prospect of the U.S. Federal Reserve raising rates, the RBI Governor said that he did not expect RBI thinking to be blown off course by the prospect. He said RBI feels that we are adequately buffered and that is not going to be the key factor in determining the monetary policy stance going forward.<br/><br/>Speaking about inclusion of the yuan in the International Monetary Fund's special drawing rights basket, Rajan said that it could lead to more devaluation of the Chinese currency. Rajan also said India does not intend to manipulate the exchange rate for the Rupee to achieve macroeconomic objectives. He said that RBI's intent is to minimise volatility in the exchange rate rather than target a particular level.