Ahead of the monetary policy review on October 25, the Reserve Bank of India (RBI) Governor, Dr D. Subbarao, today called on the Finance Minister, Mr Pranab Mukherjee, at the latter’s North Block office here on Friday.
Both of them are understood to have discussed the recent macro-economic developments including the recent fall in the value of the rupee against the dollar besides the inflation situation in the country.
The Central Bank is widely expected to go in for at least 25 basis points hike in policy rates during the upcoming review. The RBI has already hiked its policy rates a dozen times in the last 18 months to tame inflation.
The Indian rupee plummeted by 27 paise to a 28-month low of Rs 50.07 against the US dollar at the inter-bank foreign exchange market. The sharp fall in rupee in recent days could make imports expensive and aggravate the inflationary situation, economy watchers said.