The Reserve Bank of India has said that persistence of inflation and slow growth have emerged as major challenges for the monetary policy. In a report on macro economic and monetary developments, the RBI has said that there are increased risks on inflation scenario and lack of action on the fiscal front. Ahead of the first quarter review of monetary policy today in Mumbai, the RBI said that outlook for growth continues to remain weak and substantially affected amidst global slowdown, inflation, deficient rainfall and poor supply responses. RBI economists have also projected that growth in the current fiscal is likely remain below 7.5 per cent as earlier projected.According to the report on Macroeconomic and Monetary Developments, released on the eve of the policy announcement today in Mumbai headline Wholesale Price Index inflation has remained above 7.25 percent and Consumer Price Index at 10.02 percent in the month of June this year. Growth has slowed down to a nine year low of 5.3 percent in the March quarter of this year.