RBI hikes Repo Rate by 0.25 percent

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%
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