RBI to meet industrialist, credit rating firms

RBI to meet industrialist, credit rating firms
The Financial Express, April 8, 2009, Page 2

Amidst economic slowdown, the Reserve Bank of India (RBI) has convened a meeting of top industrialists, credit rating agencies and chief financial officers of the top companies in Mumbai on Thursday to discuss emerging economic situation.

RBI governor D Subbarao along with other top brass of the central bank will meet professionals from across the segments of economy before RBI announces its annual monetary and credit policy on April 21. Industrialists who are members of trade and commerce bodies like CII and Ficci will attend the meeting. The meeting will focus on the effects of stimulus packages announced by the Centre and the RBI in recent months.

Issues like interest rates, credit flow and restructuring of assets by banks will be also be discussed in the meeting.While industrialists have demanded more stimulus packages, Subbarao has cautioned that the economy will see more paid in days ahead.

However, the RBI has been vociferous about the fact that banks are not adequately bringing down their rates to prop up the demand in the system.

“The global recession, a fall-out of the unprecedented financial crisis, is the most serious economic problem that the world has faced in the post-war era and contrary to earlier hopes, it is now clear that the downturn will be deeper and the recovery will be longer than we had earlier anticipated. The RBI has played, and will continue to play, a leading role in managing the crisis and minimizing the pain of adjustment,’’ Subbarao said last week addressing RBI staffers on the occasion of the institution’s Platinum Jubilee celebrations.