New Delhi, January 11: Amid rising food inflation, Prime Minister Manmohan Singh is likely to hold discussions with Reserve Bank Governor D Subbarao tomorrow on the possibility of further monetary steps to check price rise.
The Prime Minister, according to sources, may meet RBI Governor to discuss price situation as part of the exercise to tame food inflation which soared to year’s high of 18.32 per cent on December 25.
Worried over rising prices of onion, other vegetables and milk, Prime Minister met senior Cabinet colleagues earlier in the day to work out a strategy to deal with rising inflation.
Singh’s meeting with Subbarao comes ahead of RBI’s quarterly review of monetary policy on January 25.
The Reserve Bank has already raised the short-term key borrowing and lending rates six times in 2010 in a bid to raise cost of funds and check inflationary expectations.
–Agencies