RBI to endeavour to actively manage liquidity: D Subbarao
Zee Media Bureau
New Delhi: The Reserve Bank of India governor D Subbarao on Friday said that RBI will endeavour to actively manage liquidity to reinforce monetary transmission, consistent with the growth-inflation balance.
Subbarao said that weak external demand and domestic bottlenecks continue to restrain investment in some of the major emerging economies.
With output expansion of only 4.5 percent in Q3 of 2012-13, the lowest in 15 quarters, cumulative GDP growth for the period April-December 2012 declined to 5.0 per cent from 6.6 per cent a year ago, said the RBI governor.
This was mainly due to the protracted weakness in industrial activity aggravated by domestic supply bottlenecks, and slowdown in the services sector reflecting weak external demand.
The Central Statistics Office (CSO)’s advance estimate of GDP growth for 2012-13 of 5.0 percent implies that the economy would have expanded by 4.7 percent in Q4.
The outlook for industrial activity remains subdued, with the pipeline of new investment drying up and existing projects stalled by bottlenecks and implementation gaps.