Subbarao meets PM;Chidambarm to make statement tomorrow

New Delhi, Oct 14 (UNI) RBI Governor D Subbarao today met Prime Minister Manmohan Singh and discussed the tight liquidity situation emerging as a result of the global financial crisis and a way out of the impasse.

The meeting took place at the Prime Minister's residence at 7, Race Course Road.

Before meeting the Prime Minister, Mr Subbarao had a nearly 90-minute meeting with Finance Minster P Chidambaram at his North Block office.

India's crisis managerd are closely monitoring the international and the domestic situation and work out a series of measures to bail out the economy from the peculiar situation of tight liquidity, falling industrial production, a lower than projected GDP growth rate, high inflation and a depreciating rupee.

The managers are now giving the highest primacy to improving the liquidity crunch and restoring market and investor sentiment.

Mr Chidambaram is slated to make a statement to the press tomorrow morning.

These actions of the government have already had a soothing effect on the bourses, as the BSE Sensex went up by a whooping 781 points yesterday and 174 points today.

Sources say the markets are keenly looking forward to the Finance Minister's remarks on Wednesday.

Mr Subbarao, after meetin Mr Chidambaram, told newsmen that markets were under "control" and the liquidity situation was "comfortable." UNI AK-GS BDP KN2207