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RBI chief meets Pranab Mukherjee, assures more steps

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CA.Tarun Maheshwari

CA DISA

7150 Points Posted on 23 February 2009

NEW DELHI: The Reserve Bank
of India (RBI) ON Monday said it was closely monitoring the economic scenario and would take "appropriate policy action

as may be necessary".

RBI Governor Duwuri Subbarao Sunday met External Affairs Minister Pranab Mukherjee and "assured him that the Reserve Bank is constantly monitoring the situation", a bank statement said.

"The governor briefed the minister on the evolution of the global financial crisis

, the outlook for the global economy and the response of the advanced and the emerging economies to the crisis based on his meetings with the other central bank governors in Basel, Switzerland, in January and in Kuala Lumpur, Malaysia, in February," the RBI said.

The RBI has taken several monetary steps to ease out liquidity crunch in the financial system, including successive cuts in key interest rates like the repo rate - the interest charged by the RBI on borrowings by commercial banks. The repo rate currently stands at 5.5 percent.