Subbarao briefs FM on economic situation

Reserve Bank of India Governor D Subbarao met Finance Minister Pranab Mukherjee last night to brief him on the economic situation. 
“The governor briefed the finance minister on the evolution of the global financial crisis, the outlook for the global economy and the response of the advanced and the emerging economies to the crisis based on his meetings with the other central bank governors in Basel in January 2009 and in Kuala Lumpur in February 2009,” RBI said in a statement today.

The meeting comes days after Mukherjee told Parliament that he would discuss the possibility of further fiscal and monetary measures to revive economic growth, which is projected to fall to 7.1 per cent this year, as against 9 per cent or more during the last three years.

The Central Statistical Organisation is due to release third quarter gross domestic product estimates at the end of the week and there is expectation of RBI announcing more measures after the data is released.

Last week, Subbarao said in Tokyo that there was room to lower interest rates further. He had also noted that the industrial output had shrunk, exports and service sectors have been hit and investment demand has decelarated.