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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