RBI Gov. Subbarao meets Chidambaram to discuss macro-economic situation

RBI Gov. Subbarao meets Chidambaram to discuss macro-economic situationRBI Governor Duvvuri Subbarao on Thursday held a meeting with Union Finance Minister P. Chidambaram to discuss the macro-economic situation ahead of the central bank's January 29 monetary policy review.

Speaking to reporters, outside the union finance minister's North Block office, Subbarao said that it was a standard practice to meet the finance minister ahead of a monetary policy review.

Subbarao told reporters, "Our next quarterly review policy is scheduled for Tuesday. As per standard practice, I have come to review macro-economic situation with the finance minister."

The central bank is scheduled to announce the third quarter monetary policy review for the financial year 2012-13 on January 29.

Analysts are expecting the central bank to cut key policy rates by at least a quarter a per cent to provide a boost to the country's economic growth as the rate of inflation is on the decline and the government is moving ahead with some very important economic reforms.

In the previous review announced December 18, Subbarao had dropped hints that the central bank would ease monetary policy rates in the January review.

Meanwhile, Mr. Chidambaram restarted the debate on taxing the super rich by saying that there was an argument that when the economy requires more resources, the super rich should willingly pay a little more.