Economy requires further monetary action - MS Ahluwalia

The deputy chairman of planning commission, Montek Singh Ahluwalia has indicated further changes in the monetary policy as part of
second stimulus package.

"With economy growing below potential and inflation on its way down, there is a scope for further monetary action," Montek Singh Ahluwalia told reporters at the planning commission.

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Mr Ahluwalia further added that further increasing expenditures may not be a thrust area for the government. "The world economy is expected to get worse next year. We have proposed a stimulus package for this year and next year. Barring this,
we are not proposing any new expenditure for this fiscal."

The second stimulus package is likely to come out in next few days. However, when asked about the date on which the package would be announced, Mr. Ahluwalia declined to specify any particular date but said that the government was continuously watching the situation and it would not hesitate to take any further steps.


source - www.economictimes.com