Revival As A Result Of Closing Year Stages: Subbarao - May 23, 2009

The economy may witness revival later this year with fiscal stimuli work its way through. However, such a recovery can sustain only if the government returns to fiscal discipline, according to Duvvuri Subbarao. The RBI governor is holding on to the 6 per cent GDP growth estimate for this year, based on the central bank''s balance of evaluation in the weeks following the April monetary policy.

The new government, the RBI governor implied, might wish to carefully weigh the benefits of another fiscal stimulus with the cost of a rising fiscal deficit. Mr Subbarao was speaking for the first time since the dramatic victory of the Congress-led UPA government on May 16 which promises a stable government for the next five years.

Reserve Bank Is Continuously At Right Time Subbarao - Nov 19, 2008

The Reserve Bank is continuously watching the liquidity situation and would decide on its future course of action on interest rates at an appropriate time, Governor D Subbarao said.We are hearing what everyone is saying and the decision will be taken at an appropriate time, Subbarao told reporters after his meeting with Finance Minister P Chidambaram, when asked about the RBI’s planning about rate cuts.

Subbarao is believed to have discussed the current liquidity situation in the country''s banking system at a meeting with the Finance Minister here, where private sector banking giant ICICI Bank CEO and CII President K V Kamath was also present. According to the RBI Governor, the RBI is constantly and continuously monitoring the situation. Asked if ICICI Bank would cut interest rates, Kamath said that interest rate is a play of demand and supply. Yesterday Commerce Minister Kamal Nath said after a meeting of the Prime Minister-chaired committee on tackling the global turmoil that the RBI might look at fresh measures to inject more funds into the cash-starved banking system.