RBI governor denies discussing interest rate cut with government
By IANSSunday, March 1, 2009
NEW DELHI - Putting to rest speculations over cut in key rates, Reserve Bank of India Governor D. Subbarao Saturday said his meeting with top officials of the government was to discuss India’s position on the upcoming Group-20 (G-20) global finance ministers’ meeting.
‘My meeting was only pertaining to the G-20 summit,’ Subbarao told reporters, referring to his extended talks with Planning Commission Deputy Chairman Montek Singh Ahluwalia.
Economic Affairs Secretary Ashok Chawla and RBI Deputy Governor Rakesh Mohan were also present at the meeting.
The G-20 meeting is scheduled to be held March 14 in London.
The market was buzzed with speculations of further cut in interest rates by the country’s central bank as the economic growth dropped to 5.3 percent for the third quarter and inflation went down to 3.36 percent.
