8216;Liquidity may fuel commodity prices8217;

The Minister said this when asked about the impact of liquidity infusion by developed countries at a press conference on the sidelines of IMF-World Bank meetings.

On the positive side,Chidambaram said the money being injected by the US,euro zone countries and Japan,would also benefit developing countries which require investments.

8220;The other side of it is that if so much liquidity is injected8230;some of that liquidity will find its way to the developing countries as money either FDI or FII and that is

the money we require for our own investment needs.

8220;One has to make a call after few months8230;I think there are pluses and minuses,but I hope that the pluses will outweigh the minuses,8221; he said.

Referring to steps taken by developing countries to easy money supply,he said it was too early to say whether the monetary policy was 8220;right or wrong8221;.

He further said infusion of huge liquidity may lead to increase in commodity prices in dollar terms,but may not have the same impact in terms of local currencies.

8220;Its possible that prices may be elevated in the dollar terms but it may not be elevated in the terms of local currency. Its too early to say anything definitely. But

it has not led to appreciation of all currencies,8221; the Indian Finance Minister added.