Both Govt and RBI engaged in curbing inflation: Rajan

He said RBI always maintains balance between growth and inflation

Ahead of the Reserve Bank of India's policy review, central bank governor Raghuram Rajan today called on new Finance Minister Arun Jaitley and said both the government and the monetary authority are engaged with curbing inflation.

"It (curbing inflation) is absolutely a task that the government and the RBI are engaged with," Rajan told reporters after the meeting, which lasted for about 50 minutes.    

Soon after taking charge of the Finance Ministry today, Jaitley stressed on the need of a "balancing act" to deal with the declining growth and high inflation.      

"Absolutely, RBI has always maintained the balance between growth and inflation," Rajan said, adding that the central bank would continue to do so.     

High inflation rate has forced RBI to keep policy rates high.

RBI is slated  to come out with its monetary review on June 3.

Rajan said the current account deficit (CAD) number, released yesterday, was very healthy.

India’s current account deficit (CAD) narrowed sharply to $ 1.2 billion or 0.2% of GDP in Q4 of 2013-14 from $ 4.2 billion or 0.9% of GDP in Q3 of that year.

For the entire FY14, CAD came down to $ 32.4 billion or 1.7% of GDP from $ 87.8 billion or 4.7% of GDP in 2012-13.

When asked about easing of curbs on gold imports, the Governor said: "You will see policies as they are rolled out".