RBI stand in line with govt: FM

Finance Minister P Chidambaram today justified the RBI's decision to leave the key short-term interest rates steady at 5 per cent saying that the current economic situation in the country did not require any sharp adjustment in interest rates.

"The RBI policy statement is in line with what the government thinks. At the moment, I don't think there is a case for any sharp adjustments in interest rates," Chidambaram told reporters.

Chidambaram said the government would ensure price stability and was keeping a close watch on inflation.