RBI watching economy, to act at right time: Subbarao

The Reserve Bank of India is monitoring the economic situation and will take action at the right time, its governor, Duvvuri Subbarao, said on Tuesday.

Subbarao, who met Finance Minister P Chidambaram and senior finance ministry officials, told reporters: "We are constantly monitoring the situation. We will take appropriate action at the appropriate time." He did not elaborate.

Asked about the possibility of a cut in key rates, Subbarao said: "Nothing to say on policy".