See economic turnaround later this year: Subbarao

Here is a transcript of Subbarao's views on issues like government borrowings, financial markets and the economy.

On government borrowing:  

Large government borrowing is going against the low interest rate environment that the RBI is trying to maintain to spur investment demand and keeping with the monetary policy. RBI will continue to use a combination of monetary and debt measures to maintain government borrowing to ensure its successful completion in a smooth manner.

On financial markets:

The financial markets, particularly banks, had continued to function normally. Taking a cue from the RBI monetary easing, most banks have reduced the deposit and lending rates.

On economy:

As the monetary and fiscal stimuli work their way through and if calm and confidence are restored in the global markets, we can see eco turnaround later this year.