India's cbank watching econ, to act at right time

NEW DELHI, Nov 18 (Reuters) - India's central bank 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 Palaniappan 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." (Reporting by Rajkumar Ray and Manoj Kumar; Editing by Mark Williams)