Given the context, the meeting between RBI Governor Raghuram Rajan and the new Finance Minister, Arun Jaitley, was expected to be significant. In the event, the meeting, which was among the first between a senior government officer and a senior Minister of the new government, has been noteworthy for several reasons. Most importantly, Mr. Jaitley appears to be on the same wavelength as the RBI, acknowledging the challenges the government faces in restoring the pace of growth, contain inflation and concentrate on fiscal consolidation, all important policy objectives whose pursuit involves “a tough balancing act”. Those words will resonate well with the RBI,.........
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