RBI Central Board reviews economic scenario

Ahead of the monetary policy review later this month, the Central Board of Reserve Bank of India (RBI) today met to discuss the key economic and financial developments.

The meeting was chaired by RBI Governor D Subbarao. The Central Board of Directors meets at least once every quarter.

"The meeting reviewed key economic, monetary and financial developments," RBI said in a statement.

The governor and deputy governors also briefed the new Board members on the objective and functions of the various departments of the apex bank.

Newly nominated Directors to the Board Y H Malegam, Anil Kakodkar, Kiran Karnik, Dipankar Gupta, G M Rao, Ela Bhatt and Indira Rajaraman were also present at the meeting.

Against the backdrop of high inflation and sluggish industrial growth, the monetary policy review is keenly awaited. The central bank has been continuously hiking interest rates since March, 2010 to tame high inflation.

The quarterly review of the credit policy is due on October 25.

Yesterday, RBI had indicated that it may not lower the key interest rates as inflation was still high.

"...We need to bring inflation down in order to bring interest rates down," Subbarao had said.

The overall inflation was at 13-month high of 9.8% in August.