Comments by policymakers, industry, economists

October 10th, 2008 - 7:51 pm ICT by IANS  

New Delhi, Oct 10 (IANS) Following are some of the comments by key policymakers, industrialists and economists.Finance Minister P. Chidambaram:
“We have identified that the main problem is liquidity, and we… will… take steps to infuse more liquidity. Credit is the lifeline of trade and business, hence, it is important that credit continues to flow to all sectors of the economy.”

Securities and Exchange Board of India chairman, C.B. Bhave:
“There has been no shorting by institutions in markets. We also have confirmation from both stock exchanges (National Stock Exchange and the Bombay Stock Exchange) that there is no unusual trading.”

The Prime Minister’s Economic Advisory Council Chairman Suresh Tendulkar:
“RBI must keep a watch on market trends. Though the Indian financial market’s exposure is much less, any complacency will be bad.”

Confederation of Indian Industry director general Chandrajit Banerjee:
“This (reduction in CRR) would help boost industry sentiments. Pro-active action from the Indian regulators would ensure that India remains an island of stability even as the financial crisis unfolds in the rest of the world.”

The Federation of Indian Chambers of Commerce and Industry:
“Reduction in interest rates is absolutely essential in order to give a push to investments and thus to employment and demand which has taken a severe beating in the recent past. Such confidence boosting measures are also important to bring the stock market to normal levels.”

Associated Chambers of Commerce and Industry president Sajjan Jindal:
“It was high time that the central bank should also consider reducing the benchmark lending rate to ensure adequate liquidity in the system. Otherwise, infrastructure projects would be severely affected.”

Citi India economist Rohini Malkani:
“Citi expects further policy action, that is, more CRR cuts, possibly an SLR cut, unwinding of the MSS as well as continued injection via the repo window. They also expect more easing of norms on the external account.”

Goldman Sachs Asia Economics research team vice president Tushar Poddar:
“This move will help ease some liquidity pressures in the money markets. We expect continued moves by the RBI to ease liquidity, and the probability of a rate cut at the Oct 24 policy meeting has increased.”

ICICI bank joint managing director Chanda Kochhar:
“ICICI Bank has adequate rupee liquidity in the context of the current environment.”

IDBI Capital CEO and managing director Nagendra Bhatnagar:
“The fall is in lines with what is happening across the globe. With FIIs being major players in the market, Indian markets cannot remain insulated from the financial meltdown.”

HDFC vice-chairman and managing director Keki Mistry:
“CRR cut was needed. There is no liquidity in the market.”

Bank of India chairman and managing director, T.S. Narayansami:
“At present we are not looking for growth. We want to stay liquid. This move by RBI was required.”

Religare Securities president Amitabh Chakraborty:
“Banks are proxy of our nation’s economy. Any crisis in the banking sector will be reflected in the entire industry.”

RPG Foundation president D.H. Pai Panandikar:
“Yes, liquidity is a problem and I am glad the finance minister also says so. But the markets have crashed, the rupee is sliding, there is a global turmoil and inflation remains high. All this could affect out growth.”

Infosys chairman and mentor N.R. Narayana Murthy:
“This is the first time in the last two decades when you have seen the Wall Street and the Main Street getting affected by the global financial turmoil. It is also the first time when governments the world over had to step-in in a major way to bail out individual firms, banks, institutions from the financial mess they have got in.”

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