Gokarn expects wage hikes in several sectors

KOLKATA: Reserve Bank of India (RBI) Deputy Governor Subir Gokarn expects a sort of quasi-stimulus in the form of wage hikes in several sectors, which would help provide a demand-pull to the economy.

"Pay Commission wasn't an one-off phenomenon. RBI employees would get a wage hike within a few months' time and in other sectors, the hike would happen soon," Gokarn said, addressing a banking summit organised by Indian Chamber of Commerce here Monday.

Talking about liquidity in the system, he said: "There is enough liquidity. We need to manage it in non-disruptive way".

Gokarn also said the banking system is adequately capitalized.