RBI Governor, FM meet ahead of policy review

Reserve Bank Governor Y V Reddy today met Finance Minister P Chidambaram here, and is understood to have discussed measures to tackle the rupee appreciation.

The meeting, ahead of the central bank's quarterly monetary policy review scheduled for July 31, went on for over an hour, and was also attended by RBI Deputy Governor Rakesh Mohan and Chief Economic Advisor Ashok Lahiri.

The rupee has appreciated by around 10% from January to June this year, and has adversely affected certain categories of exporters like textiles, IT, leather, gem and jewellery.

Sources said that apart from the issues of credit policy and rupee appreciation, Chidambaram and Reddy also discussed interest rates and further steps to contain inflation, which has come down to 4.13%.

Reddy declined to disclose what transpired in the meeting. "If I have to tell anything, I will tell you," he said.