Amid growing clamour for another policy rate cut, the Reserve Bank of India (RBI) Governor Raghuram Rajan on Wednesday called on Finance Minister Arun Jaitley at his North Block office.
The meeting assumes significance as it came days before the RBI undertakes a monetary policy review next Tuesday (June 2).
The central bank is widely expected to go in for a 25 basis point cut in policy rate on June 2, given the softening trend in retail inflation in recent months.
“We discussed a number of issues, so very useful. It was a usual meeting with the finance minister. It was a cordial meeting as usual”, Rajan told reporters after his meeting with Jaitley.
While Jaitley had last week obliquely called for another policy rate cut, the Chief Economic Advisor to the Finance Ministry Arvind Subramanian said on Tuesday there was scope for monetary easing given that inflation was coming down.
srivats.kr@thehindu.co.in