Rajan meets Jaitley ahead of next week’s monetary policy

Amid growing demand for <g data-gr-id="14">rate</g> cut, Reserve Bank Governor Raghuram Rajan on Wednesday met Finance Minister Arun Jaitley and discussed a wide range of issues. “We discussed a number of issues,” Rajan told reporters after a meeting with the Finance Minister.

The meeting assumes significance as the clamour is growing for a rate cut by the Reserve Bank of India (RBI) in its second bi-monthly policy on June 2. Chief Economic Advisor Arvind Subramanian had on Tuesday pitched for a rate cut. “Looking at the analysis of what is the inflation forecast, what is the fiscal consolidation, what is the international environment...and how monetary policy should respond, I think there is scope for monetary easing,” he had said.

The Reserve Bank is slated to review its monetary policy next week during which it will take a call on interest rate taking into account inflation and other economic parameters.