Rupee and bonds weakened on Thursday after the US Federal Reserve signalled it may increase its policy rates at the next meeting in December.
RBI governor does not want to move in haste for achieving financial inclusion.
Rajan also said weak results from India's corporate suggested final demand is yet to pick up strongly.
Analysts expect the Reserve bank to cut rates in next monetary policy.
The new bond was changing hands at 7.72 per cent.
'Both IIP and CPI inflation numbers are showing a huge disconnect from the leading indicators.'
Sahoo panel suggests India must ease global borrwoging norms for corporate houses.
The RBI targets inflation at 6 percent by January 2016 and 4 percent for 2017/18.
Offshore rupee debt was likely to attract good demand
India builds up record FX after Fed hints rate hike in future.
The Budget loosened the reins on public spending to drive growth.
India's banks rely on overnight borrowings to fund longer-term lending.
Indian bond yields may not spike if the government opts to increase spending when it unveils its annual budget in late February.
Earlier, India said the headline annual consumer price inflation accelerated to 5 per cent, compared with a 4.4 per cent print in November.
The rupee had weakened by 23 paise to end at 63.51 against the American currency on Wednesday on month-end dollar demand from oil companies and persisting selling by foreign funds in stocks.
The rupee had gained five paise to close at 63.25 against the dollar in on Monday's trade on fresh selling of the US currency by exporters amid bullish stocks.
The rupee has posted its biggest single-day fall in more than four months to end at 62.95 against the dollar.
The RBI expects inflation in 2015 to hover around 6 per cent -- its target for January 2016 -- and sees risks to the target evenly balanced.
Rupee ends at 61.89 against the dollar, falls for second straight day.