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Reddy meets Chidambaram ahead of credit policy review

Sources indicate that interest rates, inflation and the rupee were discussed at the meeting, reports G Choudhary.
Hindustan Times | By Gaurav Choudhury
UPDATED ON JUL 11, 2007 02:23 AM IST

Reserve Bank of India Governor YV Reddy on Tuesday called on Finance Minister P Chidambaram ahead of the quarterly monetary policy review on July 31.

Reddy refused to divulge details, but sources indicated that interest rates, inflation and the rupee were discussed at the meeting also attended by RBI Deputy Governor Rakesh Mohan and Chief Economic Adviser Ashok Lahiri.

“If I have to say anything, I will tell you,” Reddy told reporters after the meeting. Reddy had recently said the slowdown in inflation and its macroeconomic impact were being analysed.

Inflation clocked 4.13 per cent in the previous week, raising hopes of an easing of monetary measures by the RBI.

In its slack season credit policy in April, the RBI had pegged the average annual inflation rate for 2007-08 at 5 per cent and said it would be in the range of 4.0-4.5 per cent over the medium term.

Inflation has been a major cause of concern for policymakers, with the government and the RBI taking several fiscal and monetary policy measures to rein in rising prices. The RBI has been mainly hiking interest rates to contain inflation.

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