The minister is likely to inform the RBI board about the steps taken to contain fiscal deficit and may underline the need for reducing interest rates to promote growth.
Chidambaram, in an interaction with India Inc today, expressed the hope that RBI would cut key interest rates going forward. RBI is schedule to announce its mid-quarter policy review on March 19.
In its last review on January 29, the central bank had lowered short term lending and borrowing rate by 25 basis points. It has also slashed Cash Reserve Ratio by 25 basis point to inject liquidity of Rs 18,000 crore into the system.
RBI has pegged the economic growth in the current fiscal
at 5.5 percent.
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