Raghuram Rajan meets with Arun Jaitley to fix rates

On June 1, RBI governor Raghuram Rajan had discussed the macro-economic situation and issues related to price rise with new Prime Minister Narendra Modi.  A week ago, Raghu ram Rajan likewise met the recently selected Finance Minister Arun Jaitley in the same matter. Finance Minister Arun Jaitley said,” fighting price hike is a priority, stressing that the central bank has always maintained a balance between the need to check inflation and prop up growth. The RBI may leave key interest rates unaffected its monetary policy review as Mr. Rajan is likely to prefer containing stubborn inflation before conceding to demands for a rate cut to hike.