Necessary to be calm and confident to ride the current crisis: FM

Finance Minster P Chidambaram, reacting to the Reserve Bank of India’s mid-term review of Annual Policy for the year 2008-09 told reporters that the central bank will manage financial and price stability and sustain growth for which it will continue to deploy conventional and nonconventional tools.

Citing RBI’s observations that said: “Indian financial system is strong and healthy, and our economic fundamentals are strong. Once the global situation is managed and calm and confidence are restored, we will return to our higher growth trajectory.” The FM reiterated that it is necessary to be calm and confident to ride the current crisis.

Chidambaram also added that decision to keep the bank rates unchanged was along the expected lines.