India: 2008 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for India

IMF Staff Country Reports, March 18, 2009

Source details

Canonical URL

India: 2008 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for India

Other formats

• Markdown version
• Structured JSON version
• Bundle manifest

Bibliographic details

• Published: March 18, 2009
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781451818666.002

Summary

• India’s financial system compares favorably internationally, but rising credit risk and liquidity pressures are putting it under strain.
• The staff report for India’s 2008 Article IV Consultation discusses economic developments and policies.
• The authorities have already taken numerous welcome measures in response to the crisis.
• The Reserve Bank of India has been quick in reversing its policy stance and the reductions in interest rates, the cash reserve ratio, and the statutory liquidity requirement together with stepped-up open market operations have been fully warranted.

Key findings and analysis

• Financial system assessment:
  • The financial system compares favorably internationally.
  • Rising credit risk and liquidity pressures are noted as mounting strains.
• Policy response:
  • Authorities have implemented numerous measures in response to the crisis.
  • The Reserve Bank of India reversed its policy stance promptly.
  • Specific monetary policy actions cited: reductions in interest rates, reductions in the cash reserve ratio, reductions in the statutory liquidity requirement, and stepped-up open market operations.
• Scope of the report:
  • The staff report covers economic developments and policies related to the 2008 Article IV Consultation.

Subjects and keywords

• Subject: Banking, Commercial banks, Credit, Financial institutions, Foreign exchange, Loans, Money, Public debt
• Keywords: Commercial banks, commercial paper, contraction, CR, Credit, deficit, East Asia, Eastern Europe, GDP, Global, ISCR, January export, Loans, month-on-month terms, rate, U.S. dollar rate, WPI inflation

Content in this bundle

• _cr09187 — IMF Staff Report Excerpts
  • _cr09187 — IMF Staff Report Excerpts (Markdown version)
  • _cr09187 — IMF Staff Report Excerpts (PDF)