Categories: Bank News

Second Bimonthly statement of RBI: Key policy rate remain unchanged

RBI in its Second Bi-Monthly Statement with regard to ‘Monetary and Liquidity Measures’ made on 06.06.2016 decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5 per cent; keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL); and continue to provide liquidity as required but progressively lower the average ex ante liquidity deficit in the system from one per cent of NDTL to a position closer to neutrality. Consequently, the following rates will remain unchanged.

CRR……………………………………….   4.00%
SLR………………………………………..21.50%
Repo Rate…………………………….        6.50%
Reverse Repo Rate……………….            6.00%
Marginal Standing Facility Rate………… 7.00%
Bank Rate………………………………….. 7.00%

Call Rates……………………………………6.40 to 8.40%

The Central Bank continue to provide liquidity under overnight repos at 0.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity under 14-day term repos as well as longer term repos of up to 0.75 per cent of NDTL of the banking system through auctions; and continue with daily variable rate repos and reverse repos to smooth liquidity.

Surendra Naik

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Surendra Naik

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