It's tough to envy India's central bank right now, but it's making the right calls in a very tough situation.

On Tuesday, the Reserve Bank of India kept interest rates unchanged despite a slowdown that has forced the bank to ratchet down expectations for India's economic growth to 7 percent for the year ending in March. It did reduce banks' cash reserve requirements to help ease a liquidity crunch, but said it's premature to cut policy interest rates.

True, the latest data shows the food inflation rate has been declining for two weeks. The monthly wholesale price index rose at its slowest pace in more than a year in December, and industry lobbies are starting to call for easing interest rates.