More steps soon for fiscal consolidation: Chidambaram

New Delhi :  The government will take more steps in coming months to ensure fiscal consolidation and boost economic growth, Finance Minister P. Chidambaram said Monday.

Talking to reporters after the Reserve Bank of India (RBI) announced a 0.25 percent cut in the cash reserve ratio (CRR), Chidambaram said the central bank’s move in the coming policy review would be supportive to growth.

“I am very confident that between now and Oct 30 since the government is expected to take a number of additional policy measures and also lay out the path of fiscal correction, the response of RBI on Oct 30 will be far more supportive of growth,” Chidambaram said.

In the mid-quarter review of the monetary policy, the RBI Monday cut CRR, the proportion of money banks are required to keep with the central bank, by 0.25 percent to 4.50 percent. This will release Rs.17,000 crore liquidity into the economy.

However, the central bank kept the key interest rates unchanged.

The RBI is scheduled to announce the second quarter monetary policy review Oct 30, 2012.

File Photo :  AFP