Discussed economy with Pranab: Subbarao

RBI chief Duvvuri Subbarao said today he discussed the country's macroeconomic situation with finance minister Pranab Mukherjee, as they met for a customary meeting ahead of a policy review.

The Reserve Bank of India (RBI) chief Duvvuri Subbarao said on Friday he discussed the country's macroeconomic situation with finance minister Pranab Mukherjee, as they met for a customary meeting ahead of a policy review.

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RBI will review monetary policy on Tuesday.

The wholesale price index, the most widely watched gauge of prices in India, rose 8.43% in December from a year earlier, compared with 7.48% in November, showing food inflation had fed into the broader economy.

While monetary measures are largely ineffective in tackling supply-led problems like food inflation, the RBI is widely expected to raise policy rates by 25 basis points in its review to rein in inflationary expectations and dampen overall demand.