Ahead of policy review, RBI governor talks of 'concerns'

NEW DELHI: Ahead of the annual credit policy review, RBI governor D Subbarao on Saturday said there are serious concerns about macro-economic policy and governance, adding that fiscal deficit is a concern and current account deficit is high.

He met Prime Minister Manmohan Singh and finance minister Pranab Mukherjee on Saturday and is believed to have discussed the macro-economic situation and steps to arrest the growth decline.

RBI is due to announce the policy on April 17. It is standard practice for the RBI governor to discuss the state of economy with the FM before review of the monetary policy, but this time industry, affected by the high interest rate regime, is eagerly awaiting the policy.

India Inc wants RBI to cut interest rates to help push economic activity which has slowed down, more so as inflation has started moderating.