'Govt, RBI together on major issues'

FM says rate cut and income tax announcements will give a boost to private investments

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FINANCE minister Nirmala Sitharaman on Saturday said that both the Reserve Bank of India (RBI) and the government have been working in coordination, whether it is inflation or growth, and that neither of them encroaches into each other's territory.

Sitharaman was addressing the media after attending the meeting of the Central Board of Directors of the Reserve Bank in New Delhi..

"There is good coordination between the government and the RBI, and the government will have similar coordination with the new governor (in future)," said the finance minister.

The RBI on Friday cut the repo rate for the first time in nearly five years, immediately after the announcement on income tax stimulus in the budget. The two together are expected to give a big boost to consumption growth.