Finance Minister P Chidambaram is scheduled to address the central board of Reserve Bank of India (RBI) in a customary post-Budget meeting tomorrow.
Mr Chidambaram is likely to inform the RBI board about the steps taken to contain fiscal deficit and may underline the need for reducing interest rates to promote growth.
Mr Chidambaram in a post-budget interview to PTI earlier this week had said, "Well I can't direct RBI to do this or to do that. All I can say is as statement of fact -- if policy rates are reduced it will help us to get 6.5 per cent growth that we have target."
The Finance Minister in his post-Budget discussion with industry had said that fiscal deficit may be lower than provisional figure of 5.2 per cent of the GDP in 2012-13. Mr Chidambaram also expressed the hope that RBI would cut key interest rates going forward.
RBI is scheduled to announce its mid-quarter policy review on March 19.
In its last review on January 29, the central bank had lowered short term lending and borrowing rate by 25 basis points. It has also slashed cash reserve ratio by 25 basis point to inject liquidity of Rs 18,000 crore into the system.
RBI has pegged the economic growth in the current fiscal year at 5.5 per cent.
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