Liquidity situation is comfortable: Subbarao Wednesday, 15 October , 2008, 08:55 Last Updated: Wednesday, 15 October , 2008, 10:26 New Delhi: The Reserve Bank of India Governor, Dr D. Subbarao, on Tuesday said that the liquidity situation was comfortable and that financial markets were under control following measures in the past few days to infuse liquidity into the banking system.
Change of guard at Mint Street “We believe everything is under control. We have done what we had to. Today, the market situation is under control. Call money rate is down to 9 per cent,” Dr Subbarao told reporters soon after meeting the Finance Minister, P. Chidambaram, at his North Block office on Tuesday evening. He later met the Prime Minister, Dr Manmohan Singh. Real-sector reforms first: Subbarao Dr Subbarao said that he had reviewed the liquidity situation with the Finance Minister. The Prime Minister later reviewed the impact of global financial crisis on India and the steps taken by the Finance Ministry and RBI. The RBI Governor, however, declined to comment on what more measures were on the anvil to boost liquidity. New RBI head sees signs of inflation slowdown Earlier in the day, the central bank had come to the aid of the mutual funds industry by holding an additional money auction that saw Rs 3,500 crore of 14-day money move into certain banks at 9 per cent interest a year. Meanwhile, Chidambaram, on Tuesday welcomed the RBI announcement on the additional 14-day money auction. His reactions to the announcement came soon after the Indian equity markets opened on a bright note, going up by about 500 points in early trade. RBI will keep an eye on inflation, economy He said that the mutual funds had sought a facility for accessing funds after some of them faced liquidity stress in meeting redemption requirements in debt and money market instruments. ‘RBI may soften policy stance in the mid-term review’ Chidambaram said that the Government has been informed by the mutual funds industry that against their borrowing from the banks they will give as security, mainly, certificate of deposits of the banks themselves. More India business stories “IBA Chairman is in touch with the banks as well as the mutual fund industry to decide on an appropriate rate at which the banks will on- lend to the mutual funds,” he said. --~--~---------~--~----~------------~-------~--~----~ 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 -~----------~----~----~----~------~----~------~--~---
