FM meets PM & RBI over Rupee woe

PTI, NEW DELHI | 15 July 2013 21:44 IST

With plummeting rupee, Finance Minister P Chidambaram today met Prime Minister Manmohan Singh and later held discussions with RBI Governor D Subbarao who said the central bank will look into latest inflation numbers before coming out with the monetary policy review.

In his meeting with Singh in the morning, Chidambaram is believed to have discussed the current economic situation against the backdrop of falling rupee, which ended lower by 33 paise to 59.89 against the dollar. 

Rupee had earlier in the month touched an all time high of 61.21 to a dollar. 

Chidambaram also briefed the Prime Minister about his recent Washington visit, where he pitched for US investments in India. There he had also met key policy makers including Treasury Secretary Jacob Lew, besides heads of several multi national companies. 

Later in the day, the Finance Minister met Reserve Bank Governor Subbarao, who also had meetings with other top ministry officials. 

"Of course, we will take into account inflation numbers while framing the policy," Subbarao told reporters after the meetings. 

Inflation, which has been a key concern for the RBI, rose to 4.86 per cent in June from 4.7 per cent a month ago on costlier kitchen items like onion, rice and other cereals. 

The central bank is scheduled to announce the first quarter monetary policy review on July 30 amid industry demand for reduction in interest rate to boost sagging growth. 

Subbarao is also believed to have discussed the declining rupee and macro economic situation with Finance Ministry functionaries.


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