Rajan meets Jaitley ahead of monetary policy next week

Amid growing demand for rate cut, the Reserve Bank of India (RBI) Governor Raghuram Rajan, on Wednesday, met the Finance Minister Arun Jaitley and discussed a wide range of issues.

“We discussed a number of issues,” Mr. Rajan told reporters after a meeting with the Finance Minister.

The meeting assumes significance as the clamour is growing for a rate cut by 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. — PTI