FinMin expects RBI to maintain soft stance

The finance ministry on Wednesday expressed hope that the Reserve Bank of India in its monetary policy review next week will continue the current soft policy stance.

"We hope it (RBI) continues," finance secreaty Ashok Chawla told reporters when asked whether RBI will continue its soft monetary stance.

Ahead of the monetary policy review, RBI governor D Subbarao is expected to meet Prime Minister Manmohan Singh and finance minister Pranab Mukherjee on October 23.

Though there are inflationary pressures on the economy because of rising food prices, economists believe that the apex bank will maintain its status quo on monetary policy.