RBI Diminish Fear of a Recession

With the stock market making a steep downfall these days and not reacting positively to the steps taken previously by Reserve Bank Of India and other Financial Corporates. Even though they flush Liquidity into the market, the market is going down. As a normal man we cannot able to understand this because this is far beyond our’s reach. Pegging the GDP growth for Financial Year ’09’ at 7.5-8 per cent RBI Governer D. Subbarao said “This is our best growth estimate” even though there were other estimates ranging from 7.2-8.7 per cent. As India mainly depends on the domestic growth,when considered with other countries is far dependent from the crisis but we have a ripple here, that no one can deny,even the Government. Regarding D. Subbarao ” If there are liqudity constraints or anything needed to be done within the RBI’s mandate We will do it. In october RBI injected Rs.1,85,000 crore liqudity into the System and Repo Cut were also inducted. This gave the confidence and in future if this gives a Warrenty,RBI would not hesitate to infuse or withdraw liqudity from the System. Recent measures taken were considered to give good result with call money rates close to the Reverse Repo Rate. RBI is an independent body and it will contact the Government and with their reference RBI will make a blueprint of how and when things should be done… In mathematical calculation it was coming down and should around 7 per cent.

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