With the rising inflation and the likeliness of RBI to hike the key policy rates, Subbarao wanted to call for a meeting to talk about all such things.
"As a standard practice I had come to review the macro economic situation with Finance Minister and senior officers ahead of the policy review," Subbarao informed reporters after meeting Mukherjee.
It is being anticipated that the Reserve Bank of India (RBI) will raise the key interest rates by 25 basis points on May 3, the day when it is supposed to announce its annual monetary policy.
This hike being brought in the interest rates by RBI is the step taken by the bank to deal with pressure created by the rising prices. This is the ninth time since March 2010 that RBI has pushed the rates up.
With the inflationary pressure rising along with the slow industrial growth, the central bank currently has to deal with many challenges which if not dealt with might affect the economy in a bad way.