Concerns over inflation and monsoon persists
The Reserve Bank of India, kept the key policy rates in the Fifth Bi-Monthly Monetary Policy Statement 2014-15. It decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 per cent, the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL). It also decided to continue to provide liquidity under overnight repos at 0.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity under 7-day and 14-day term repos of up to 0.75 per cent of NDTL of the banking system through auctions; and continue with daily one-day term repos and reverse repos to smooth liquidity. Consequently, the reverse repo rate under the LAF will remain unchanged at 7.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 9.0 per cent.Powered by Capital Market - Live News