Reserve Bank of India governor Raghuram Rajan and Finance minister Arun Jaitley, who will share a crucial bond as the Narendra Modi government seeks to revive the economy and tame prices, were cautious to speak the language of balance with the next monetary policy announcement due in less than a week.
Jaitley spoke of “balancing” the fight against inflation with the need to nurture growth after they met in Delhi on Tuesday.
Rajan said, “It (curbing inflation) is absolutely a task that the government and the RBI are engaged with. RBI has always maintained the balance between growth and inflation.”
Raghuram Rajan was among Jaitley’s first visitors after taking charge at the finance ministry on Tuesday.
As the nature of ties between North Block and Mint Road have tended to ebb and flow, the statements by Jaitley and Rajan signal a relationship that may be cordial rather than frosty as had been speculated.
Both inflation and growth amounted to the government’s most critical challenges, Jaitley said.