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PM reviews economy, fresh steps hinted
New Delhi, Nov 17 : The Reserve Bank is expected to announce fresh measures to inject more funds into the cash-starved banking system following a meeting of the Prime Minister-chaired committee on tackling the global slogan.
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"The meeting considered certain steps and RBI will look at them... Various methods of injecting liquidity through repo and reverse repo (short-term) rates were discussed," Commerce and Industry Minister Kamal Nath told reporters after the meeting.
Asked how soon the measures would be announced, Nath said, "This will happen in due course...It will not take long. The government is conscious of the fact that the Prime Minister himself is monitoring (the situation), which means the action would be taken soon."
The meeting was also attended by Finance Minister P Chidambaram, Planning Commission Deputy Chairman Montek Singh Ahluwalia and RBI Governor D Subbarao.
To a question on the job cuts, he said the government would not hesitate to raise tariffs sharply wherever cheap imports were causing injury to the domestic industry.
The meeting looked at liquidity issues, especially in housing, construction and non-banking financial sectors.
The RBI has unlocked Rs 2.75 lakh crore during the last a few weeks through cuts in various mandatory deposits that banks need to keep with the central bank.
It also allowed housing finance companies to borrow short-term funds from overseas sources.
However, despite the measures taken by RBI, the liquidity condition and high interest rates continue to be a matter of concern for the industry. |
