The Reserve Bank of India Governor D Subbarao said the liquidity situation in the country is comfortable, reports CNBC-TV18. "We have reviewed the situation with the Financial Minister. We will soon review the liquidity situation with the Prime Minister."
The Governor said the call money rate is down to 9% and money market situation is under control. According to Subbarao, RBI is not certain if they will take further steps. Here is a verbatim transcript of Abhijit Neogy's comments on CNBC-TV18. Also see the accompanying video. The RBI Governor did come in late evening and he met the Finance Minister. It is becoming increasingly apparent that some of the steps that have been taken in the week that has just gone by have actually yielded results. The Governor was actually talking about the call money rate coming down to about 9.1%, which essentially means that he is perhaps talking of less fire-fighting. But that doesn't mean that the war to infuse liquidity is by any means over. In fact, the liquidity committee is going to meet tomorrow in Mumbai and we understand that the government is already ready with a set of measures, which maybe announced as early as tomorrow. A host of measures have been discussed in that liquidity meeting and we believe that those measures including CRR or SLR cut can also be discussed in this particular meeting that the Governor is holding with the PM. I think the broad message that we are picking up right now is the liquidity situation is easing and more so with the Rs 20,000 crore repo window which have been opened for mutual fund redemptions today. What will be of interest is now is will the government stagger the announcements or will they wait till the October 24 Policy meet. My hunch is that they will look at the unfolding liquidity situation and as and when the situation demands perhaps those announcements will be made. But make no mistake, this government is very serious about tackling liquidity. They don't want an imported credit crunch coming in from the US http://news.moneycontrol.com/india/news/economy/liquidity-situtaionindia-comfortable-rbi/22/13/361275 The law of gravity says no fair jumping up without coming back down --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
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