No signs of economy overheating: FM

Finance Minister P Chidambaram today said there were no signs of the economy overheating, while justifying the Reserve Bank's decision to hike repo rate by 25 bps as "well-intended."

"I don't believe there is overheating. RBI has only cautioned. And if they had not taken action, I think some sectors may have shown some signs of overheating," he said.

RBI Governor Y V Reddy, after releasing the credit policy, had said that the hike was a signal to banks that borrowing from the RBI could be an expensive affair.