Reserve Bank Governor D. Subbarao, on Friday, met Finance Minister P. Chidambaram and discussed the macro-economic situation.
This was Dr. Subbarao’s second meeting with Mr. Chidambaram, following his taking over the charge of the Finance Ministry this month.
“I met the Finance Minister and reviewed macro-economic situation with him,” Dr. Subbarao told reporters here after the meeting.
Mr. Chidambaram has a formidable task to lift the sagging economy and boost investor confidence amid a weak growth outlook globally.
The economic growth last fiscal slipped to 9-year low of 6.5 per cent and the prospects for 2012-13 do not look any better. The Reserve Bank, in its latest quarterly monetary review last month, had refrained from cutting the key interest rate to boost economy despite intense pressure from the industry. The central bank’s stance was guided by its decision to keep inflation under check which is above its comfort level. In July, inflation based on Wholesale Price Index stood at 6.87 per cent.
