Finance minister P Chidambaram has said that the RBI hiked CRR to mop up excess liquidity. He also added that there is no signal from RBI on the monetary policy rates.

India is ready to respond to global shocks, he said. Excerpts from P Chidambaram''s speech addressing the media:

On RBI''s stance: I am very happy with the Reserve Bank''s stance. Liquidity will be mopped up due to increase in the CRR.

On global events: In the event of any global shocks or such global situations, we are ready to respond to it in the short and medium-term.

On bank margins coming under pressure: The policy has not signalled a change in monetary policy rates. We are trying to mop up excess liquidity.

On inflation being kept at 5 per cent: There is no change. The RBI has always said that inflation is targeted between 4.5 per cent and 5 per cent.

On real-estate prices: There was some rise in real-estate prices. I think that was moderated in the last month or so. We have got reports from different parts of the country, that real estate prices are moderated. But I think the prices are still on the higher side. It could moderate as that is a function of demand and supply.

On GDP growth: The growth is up to 8.6 per cent. I am sure the Ministry of Food and Consumer Affairs will take appropriate action to ensure that there are no demand-supply mismatches.