Market situation under control: Subbarao

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New Delhi, Oct 14 (UNI) RBI Governor D Subbarao today said the market situation was "under control" and said all efforts were being made to address the problems being faced by the economy.

Mr Subbarao had an hour-and-half long meeting with Finance Minister P Chidambaram at his office in North Bloack from where he went to meet Prime Minister Manmohan Singh.

Mr Subbarao said he cannot state what the measures would be to improve the liquidity situation and boost the market and investor sentiment.

''We have reviewed the entire situation and we believe everything is under control,'' he told reporters after meeting the Finance Minister.

''I'm going to meet the Prime Minister to seek his advice,'' he said.

Mr Subbrao said the call money rates were between 9 to 9.5 per cent.

The RBI Chief stated that the liqudity situation was comfortable.

Meanwhile, the Liqudity Panel is meeting in Mumbai tomorrow to asses the credit needs of various sectors. The Panel is headed by Mr Arun Ramanathan, Finance Secretary and Secretary (Financial Services).

Mr Chidambaram had indicated yesterday that the government will shortly announce more measures to infuse liquidity, make credit intermediation smoother and increase the confidence of the depositors and investors.

Earlier in the day, Mr Chidambaram alluded to the fact that several steps were afoot to improve the liquidity situation and settle problems that impact on the Indian economy as a result of the global financial crisis, including Indian Banks Association (IBA) working out an an appropriate rate at which Banks will on-lend to the mutual funds.

He said the IBA Chairman is in touch with the Banks as well as the mutual fund industry to decide on an appropriate rate at which the Banks will on-lend to the mutual fund industry.

The statements by the Finance Minister boosted the stock market sentiments as BSE jumped by more than 781 points yesterday and today by nearly 174 points, after a steep fall last week.


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