In continuing with the objective of targeting inflation and anchoring inflationary expectations to further build an environment conducive to growth, the RBI in its Second Quarter Monetary Policy Review today, announced a raise in key policy interest (repo) rate.
Highlights below –
- Repo rate under liquidity adjustment facility (LAF) raised by 25 bps, from 7.50% to 7.75%
- Accordingly, reverse repo rate now stands at 6.75%
- Marginal Standing Facility (MSF) rate reduced by 25 bps, from 9.00% to 8.75%
- Accordingly, bank rate now stands at 8.75%
- Cash Reserve ratio (CRR) unchanged at 4.00% of NDTL
- Increased liquidity provided through term-repos of 7-days and 14-days from 0.25% of NDTL of banking system to 0.50%