Subbarao meets P Chidambaram, discusses economic situation

New Delhi, Aug 17: Reserve Bank Governor

today met Finance Minister

and discussed the macro-economic situation.

This was Subbarao's second meeting with Chidambaram, following his taking over the charge of the Finance Ministry this month.

"I met with the Finance Minister and reviewed macro-economic situation with him," Subbarao told reporters after the meeting.

Chidambaram has a formidable task to lift the sagging economy and boost investor confidence amid a weak growth outlook globally.

The country's economic growth last fiscal slipped to 9-year low of 6.5 per cent and the prospects for 2012-13 do not look any better.

Meanwhile, Prime Minister's Economic Advisory Council today pegged GDP growth for the current financial year at 6.7 per cent. The Reserve Bank, in its latest quarterly monetary review last month, had refrained from cutting the key interest rate to boost economy despite intense pressure from the industry.

The central bank's stance was guided by its decision to keep inflation under check which is above its comfort level. In July, inflation based on Wholesale Price Index stood at 6.87 per cent.

PTI