Govt swings into action to tackle liquidity crunch

Hit by a credit crunch and crash in the stock markets, Finance Minister P Chidambaram said on Friday that main problem is liquidity and government would do everything to tackle it.

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Reserve Bank of India today cut the cash reserve ratio by one per cent to ease liquidity pressures, Chidambaram said and announced to set up a high powered committee headed by finance secretary to assess the requirement.

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