Published on Mon, Oct 20, 2008 at 13:30 | Source : NewsWire18
Updated at Tue, Oct 21, 2008 at 10:38
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Repo cut to moderate inflation, ensure growth: FM
P Chidambaram said that they are monitoring the price situation on a regular basis, and that containment of inflation remains high on their agenda. He added that there has been some moderation in inflation in recent weeks.
Reacting to the 100 basis points repo rate cut , Finance Minister P Chidambaram has said the cut was consistent with the government's objective to moderate inflation and ensure satisfactory growth rate. The repo rate cut will enthuse investors to invest more, Chidambaram said.
Earlier, NewsWire18 has reported that the Chidambaram had said that the Reserve Bank of India (RBI) will respond pre-emptively to external developments. He added that the RBI is reviewing the liquidity situation constantly.
Chidambaram said that they are monitoring the price situation on a regular basis, and that containment of inflation remains high on their agenda. He added that there has been some moderation in inflation in recent weeks.
Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, said there is enough liquidity in the banking system as of now, reports CNBC-TV18 quoting Newswire18. He said that loan rates would ease post the repo rate cut, adding that banks would lend more after the rate cut.
Ahluwalia also said that there will be a significant fall in inflation in the next two months.
