Rajan meets PM, FM before his first policy review
18 Sep 2013 10:34 PM GMT
Ahead of his maiden monetary policy review, RBI Governor Raghuram Rajan on Tuesday met Prime Minister Manmohan Singh and Finance Minister P Chidambaram and discussed the country’s macroeconomic situation.
'RBI has constant consultation with Finance Ministry. This meeting was part of that. We discussed the whole gambit of issues,' he told reporters after meeting Chidambaram.
Sources said during his meeting with the Prime Minister, the Governor discussed the state of the economy and steps required to address the current slowdown and high inflation.
Rajan, who was Chief Economic Advisor in the Finance Ministry before taking over as RBI Governor on 4 September, is scheduled to announce the mid-quarter monetary policy review on 20 September.
All eyes are on the policy announcement considering the inflation climbing to six months high of 6.1 per cent in August, concerns on depreciating rupee and slowing growth.
High inflation offers Rajan limited scope to cut key rates as demanded by industry.
Soon after being named for the new assignment, Rajan had said there was no 'magic wand' to pull the economy instantly out of challenges it faces.
'We have recommended a cut in CRR, repo rate and asked RBI not to restrict the MSF (marginal standing facility) to a particular number...,' State Bank of India (SBI) chairman Pratip Chaudhuri said.
As the peak festival season is around the corner, bankers are pressing for a cut in cash reserve ratio and policy rates by the Reserve Bank to boost demand for manufactured goods and revive sagging economic growth.
'RBI has constant consultation with Finance Ministry. This meeting was part of that. We discussed the whole gambit of issues,' he told reporters after meeting Chidambaram.
Sources said during his meeting with the Prime Minister, the Governor discussed the state of the economy and steps required to address the current slowdown and high inflation.
Rajan, who was Chief Economic Advisor in the Finance Ministry before taking over as RBI Governor on 4 September, is scheduled to announce the mid-quarter monetary policy review on 20 September.
All eyes are on the policy announcement considering the inflation climbing to six months high of 6.1 per cent in August, concerns on depreciating rupee and slowing growth.
High inflation offers Rajan limited scope to cut key rates as demanded by industry.
Soon after being named for the new assignment, Rajan had said there was no 'magic wand' to pull the economy instantly out of challenges it faces.
'We have recommended a cut in CRR, repo rate and asked RBI not to restrict the MSF (marginal standing facility) to a particular number...,' State Bank of India (SBI) chairman Pratip Chaudhuri said.
As the peak festival season is around the corner, bankers are pressing for a cut in cash reserve ratio and policy rates by the Reserve Bank to boost demand for manufactured goods and revive sagging economic growth.
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