No need for interest rate changes now: Chidambaram

Finance minister P Chidambaram today said the current economic situation does not require any sharp adjustment in interest rates, justifying the RBI's decision to leave a key short-term interest rate steady at 5% in its quarterly policy review.

"The RBI policy statement is in line with what the government thinks. At the moment, I don't think there is a case for any sharp adjustments in interest rates," Chidambaram said.

The finance minister said the government would borrow less than the budget estimate of Rs 1,39,467 crore this fiscal.

He added that the government would ensure price stability and was keeping a close watch on inflation. "It (price stability) is always on the radar. Price stability is always the priority of the government," he said.