RBI assures more steps to stimulate growthDecember 11th, 2008 - 5:27 pm ICT by IANS
Kolkata, Dec 11 (IANS) The central board of the Reserve Bank of India (RBI) Thursday decided to provide refinance facility to the National Housing Bank and Export-Import Bank as part its measures to boost the ailing economy.”It has been decided to provide refinance facility of an amount of Rs.40 billion (Rs.4,000 crore) to the National Housing Bank. The facility will be available at the prevailing repo rate of 6.5 percent for a period of 90 days,” RBI Governor D. Subbarao told reporters after the apex bank’s central board met here.
India’s central bank also decided to provide refinance facility to the state-owned Export-Import Bank. The facility will be of an amount of Rs.50 billion (Rs.5,000 crore) and will be available for the same period.
Talking on the prevailing economic situation, Subbarao said: “The economic situation in India is uncertain like the global economy. It’s not possible to calibrate a precise economic roadmap now.”
According to him, the present situation demands action on both the monetary and fiscal sides. “Efforts should be made to ensure that these work in tandem.”
He added that the present monetary policy has resulted in “some positive outcome”.
“All the measures of liquidity are appropriable. We have reduced repo rate and reverse repo rate. We expect banks to respond to that cutting lending rates to keep credit flowing,” he said.