Tuesday 28 January 2014

RBI delivers a shocker; hikes repo rate by 25 bps

Yet again delivering the unexpected, Reserve Bank of India (RBI) hiked the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.75 per cent to 8.0 per cent. However, it kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liability (NDTL). Consequently, the reverse repo rate under the LAF stands adjusted at 7.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 9.0 per cent.

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