Playing it Safe! RBI does not tinker with key policy rates

The policy repo rate under the LAF remained unchanged at 6.5% and consequently, the reverse repo rate under the LAF remained untouched at 6%. The central bank maintained CRR of scheduled banks at 4% of NDTL.

Reserve Bank of India’s governor, in what could well be his last monetary policy, played it safe and maintained status quo on policy action, along expected lines. Policy repo rate under liquidity adjustment facility (LAF) remained unchanged at 6.5%. Consequently, the reverse repo rate under LAF remained untouched at 6%. Further, the cash reserve ratio (CRR) of scheduled banks was maintained at 4% of net demand and time liabilities (NDTL).