Finance Minister P Chidambaram today backed the "standstill" policy of Reserve Bank of India (RBI)."There is no change in bank rate, repo, reverse repo rate and the cash reserve ratio. That gives flexibility to the RBI Governor to move either way depending upon international and domestic developments. I can understand that, and I endorse the approach," Chidambaram told reporters today.On the possibility of increased capital inflows due to the rate cut by the US Federal Reserve, Chidambaram said: "We do not know what will happen. The cat can jump either way. There could be increased capital inflows, but there are payment obligations in those countries, there could be an outflow also. We have to wait and see."The government and RBI will work closely to respond to any emerging economic situation that may impact prices, Chidambaram emphasised."RBI Governor Y V Reddy will, I am sure, visit Delhi shortly, and we will discuss what further policy actions need to be taken (to contain capital flows)," he added.Chidambaram added that the economy is buoyant and there is no reason to believe there is a slowdown... "I see a robust economy and a performing economy," he added.
