‘RBI to maintain accommodative policy stance’

Last Updated: Sunday, August 2, 2009 - 17:32

New Delhi: Reserve Bank will continue with
the dovish monetary policy stance till demand picks up in the
economy, said RBI Deputy Governor K C Chakarabarty.

Quoting RBI Governor D Subbarao, the Deputy Governor
said, "The Reserve Bank will maintain an accommodative stance
until demand conditions improve and credit flow takes hold,
but reversing the expansionary policies is definitely on the
agenda on the way forward."

This is quite logical and reasonable, Chakrabarty said,
adding, "We are not very clear whether recovery is complete or
not."

Speaking about the Small and Medium Enterprises (SME)
sector, the Deputy Governor said, current environment for SME
is very good because everybody is looking at the local market.

"SME has a very great opportunity and they must seize the
opportunity then only we will be able to go back to 8 per cent
growth," he said after inaugurating SME Forum here yesterday.

Expressing satisfaction over loan disbursal to the
sector, he said, enough credit flow has taken place in the
last 2-3 years.

Asked if RBI could further extend the timeframe for debt
restructuring, the Deputy Governor said global crisis came all
of a sudden.

Some industry, therefore, require support like NPA
rehabilitation and the scheme continued till March 2009, he
said, adding, things have improved.

Bureau Report



First Published: Sunday, August 2, 2009 - 17:32

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