RBI mentioned that the governments inefficiency in easing the inflation is the factor for continuous increase in rate hikes.

I do not think that this factor will be resolved as it involves "government" which alway worries about giving subsidies and packages for political reasons. With just 2 years left for current UPA 2 can we expect tough stand on cutting subsidies and improving infrastructure and quality of spending money ?

Is it a good idea to hold on from investing till the environment cools down ?

With the markets and commodities correcting, I think there will be no rate hike by RBI. but will the markets further correct?