New Delhi: The Prime Minister's economic advisory panel today said the current shortage of money supply because of the festive season and public offers of PSUs will start easing within a month because of an expected increase in expenditure by the government and continued capital inflows.
"I think it should start easing in a month time," Prime Minister's Economic Advisory Council Chairman C Rangarajan told reporters on the sidelines of a function organised by consultancy firm SKOCH.
Rangarajan said there is liquidity shortage in the system and RBI's future actions will depend on the unfolding situation.
"I think there is (liquidity shortage)... The whole thing depends upon how the situation develops. If there is extreme tightness in the liquidity, then the RBI will act," he said.
Source: PTI
