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Journalism of Courage
The Reserve Bank of India is committed to ensuring adequate liquidity in all the country’s financial markets, its deputy governor, Rakesh Mohan, said on Monday.
“As you have seen in the last five weeks, we have been acting on a consistent basis to make sure financial markets work efficiently, that adequate liquidity is available in the system and also that credit flows smoothly given the current global and Indian economic conditions,” he said before a business conference.
The Reserve Bank of India has taken a string of measures over the past few weeks to improve liquidity and boost growth, cutting its key lending rate — the repo — by 150 basis points to 7.5 per cent and lowering banks’ reserve requirements.
The central bank expects the economy to grow 7.5-8 per cent in 2008/09 fiscal year, slowing from rates of around 9 per cent in each of the last three financial years.
