The RBI will look at how Tuesday's cut in the cash reserve ratio (CRR) for banks rolls out before doing more open market operations, Subbarao said after the central bank's policy review.

At 9:03 a.m. (0333 GMT), the 10-year benchmark bond yield opened at 8.41 percent from Tuesday's close of 8.35 percent.

The RBI cut the CRR to 5.5 percent, while keeping policy rates steady. It said the CRR cut would pump about 320 billion rupees ($6.39 billion) into the banking system.