Inflation rate dipped below the four per cent mark to 3.96 per cent and is under control, Finance Minister P Chidambaram said on Thursday.
For the week ended March 18, inflation stood at 4.06 per cent.
"I hope inflation remains under control. We will take steps to maintain price stability. We are happy that it has gone to 3.96 per cent," Chidambaram said.
Asked if there is any 'benchmark' when he says inflation remains under control and whether it is four per cent or somewhere below that, he said: "The RBI targets inflation. Anything under four per cent, I would think, even you will agree, is under control".
Asked if there was any input from him on CRR (cash reserve ratio) cut during his meeting with Reserve Bank of India Governor Y V Reddy in New Delhi on Wednesday, Chidambaram said issues relating to the forthcoming monetary policy and liquidity figured in the discussions.
Chidambaram declined to give a direct reply when repeatedly asked if liquidity is a concern.
"I have told you as much as I can share. Discussions between the finance minister and the Governor remain between them."
Asked if he supported higher interest rates in the short-term, Chidambaram said it's not for him to "support this or support that. Monetary policy is in the province of RBI."
On the continuing bull run on the stock market and whether it is sustainable, he said the watchdog, Securities and Exchange Board of India, keeps the government informed from time-to-time and that the channel of communication between the two is "quite open".
Chidambaram said he had a broad exchange of views with the World Trade Organisation director general Pascal Lamy in New Delhi on Wednesday.
"We exchanged views on India's economy, on how India sees further progress on tariffs and non-tariffs and on how India will respond to the WTO issues relating to tariffs on non-agricultural goods and services", he said.
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