RBI Third Bi-monthly Monetary Policy on 9th August 2016

RBI Third Bi-monthly Monetary Policy on 9th August 2016: On the basis of an assessment of the current and evolving macroeconomic situation, it has been 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.
• The reverse repo rate under the LAF will remain unchanged at 6.0 per cent
• The marginal standing facility (MSF) rate and the Bank Rate at 7.0 per cent.
• Policy  Rates on 9th August 2016 are:
• Policy Repo Rate : 6.50%
• CRR : 4.00%
• Reverse Repo Rate : 6.00%
• Marginal Standing Facility Rate : 7.00%
• Bank Rate : 7.00%