Mumbai, Jan 31: Reserve Bank of India (RBI) deputy governor Dr YV Reddy on Wednesday said the devastating earthquake in Gujarat, which killed thousands and damaged property worth crores of rupees, will not seriously affect India's macro-economic condition.``Our economy is in a strong position to make up the huge losses in such calamities. The fiscal condition is rightly on the track. We have a comfortable liquidity position in the market which will help handle the situation,'' Dr Reddy said.
``There is no need to go in for a further borrowing programme to meet the fiscal needs. The RBI is confident that strong fundamentals on the monetary front can cope with the demanding situation,'' Dr Reddy said.
The deputy governor spoke to The Financial Express on the sidelines of a seminar organised by the Fixed Income, Money Markets and Derivatives Association of India (Fimmda) in Mumbai on Wednesday.
The RBI is looking forward to finetune its liquidity adjustment facility (LAF) programme.
The RBI felt that if dealers could apply before 10 am, the auction results could be announced earlier at 11.30 am instead of 12.30 in the noon. A few suggested that it become a twice-a-day affair and that the same be introduced on Saturdays, too.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
