Updated on May 22, 2020
The Monetary Policy Committee (MPC) advance its meeting scheduled for June 3 to 5, 2020, and announced the slashing of all the key policy rates from immediate effect. As announced in today’s Monetary Policy Statement, 2020-21, it was decided to reduce the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 40 basis points from 4.40 percent to 4.00 percent and the Reverse Repo rate under the LAF stands adjusted to 3.35 percent with immediate effect. The Marginal Standing Facility (MSF) rate stands adjusted from 4.65 percent to 4.25 percent with immediate effect.
Consequently, all key policy rates with effect from May 22, 2020, are as under:
| CRR (Cash Reserve Ratio) | 3.00% |
| SLR (Statutory Liquidity Ratio) | 18.00 % |
| Repo Rate | 4.00% |
| Reverse Repo Rate | 3.35% |
| MSF Rate (Marginal Standing Facility Rate) | 4.25% |
| Bank Rate | 4.25% |
All other terms and conditions of the extant LAF Scheme will remain unchanged.
