Liquidity still evades India: Credit Suisse
The host of monetary measures taken in the past few months have not helped domestic liquidity in India ease significantly, financial service group Credit Suisse has said.business Updated: Dec 09, 2008 20:27 IST
The host of monetary measures taken in the past few months have not helped domestic liquidity in India ease significantly, financial service group Credit Suisse has said.
The credit crunch is further exerting pressure on the Indian real estate, banks, construction and metals sectors, it said in a report — ‘Liquidity Crunch in Asia’. “Policy measures should address money unavailability in six months,” the report underlined.
There is a limited impact for corporates outside the financial system accessing the liquidity created as the lenders are too cautious to lend, it added.
The study also pointed out that the financial turmoil has led to a premature shift in credit supply and availability. It noted that the liquidity problem is far from being over in spite of injecting massive liquidity into the banking system. Central banks have also cut rates to address the issue.
The study, however, noted that China has managed to stand out in the credit crunch as the least affected emerging market amid the financial contagion.
First Published: Dec 09, 2008 20:27 IST