Reserve Bank of India (RBI) Governor D Subbarao today said the country’s liquidity position was comfortable as call rates had eased to around 9 per cent.
“The liquidity situation is comfortable. I am going to meet the prime minister to seek his advice. I cannot tell you what measures are going to come. What needs to be done has been done,” he told reporters after an hour-long meeting with Finance Minister P Chidambaram.
Asked if more measures to increase the money supply were expected, Subbarao said, “That is not certain.”
“We have to review the entire situation. The situation is quite comfortable. Everything is under control,” said the governor, who returned from Washington earlier today.
Subbarao and Chidambaram later met Prime Minister Manmohan Singh but it was not known what was discussed at the meeting. Chidambaram is scheduled to address the media tomorrow morning.
Call rates fell below 9 per cent after almost a month and touched a low of 8.60 per cent, according to the Clearing Corporation of India. The weighted average for the day was 9.95 per cent, around the same level as yesterday.
It had touched a high of 23 per cent on Friday. Banks today borrowed Rs 62,800 crore through the repo route, compared with Rs 55,400 crore yesterday.
