Thursday 15 January 2015

RBI cuts repo rate by 25 bps

Consequently, the reverse repo rate under the LAF stands adjusted to 6.75%, and the marginal standing facility rate and the Bank Rate to 8.75% with immediate effect.



The RBI (Reserve Bank of India) today has been decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 8% to 7.75% with immediate effect.

The central bank has kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liabilities (NDTL).

The RBI continues to provide liquidity under overnight repos at 0.25% of bank-wise NDTL at the LAF repo rate and liquidity under 7-day and 14-day term repos of up to 0.75% of NDTL of the banking system through auctions; and continue with daily variable rate repos and reverse repos to smooth liquidity.

Consequently, the reverse repo rate under the LAF stands adjusted to 6.75%, and the marginal standing facility rate and the Bank Rate to 8.75% with immediate effect.

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