RBI keeps Repo Rate unchanged at 8%; SLR cut by 50 bps
Second Bi-Monthly Monetary Policy Statement, 2014-15 By Dr. Raghuram G
Rajan, Governor
Reserve Bank of India on Tuesday kept key rates unchanged. While the
repo rate was maintained at 8% and reverse repo rate at 7%, the SLR was cut by
50 basis points.
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 8.0 per cent;
- keep the cash reserve ratio
(CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time
liabilities (NDTL);
- reduce the statutory
liquidity ratio (SLR) of scheduled commercial banks by 50 basis points
from 23.0 per cent to 22.5 per cent of their NDTL with effect from the
fortnight beginning June 14, 2014;
- reduce the liquidity
provided under the export credit refinance (ECR) facility from 50 per cent
of eligible export credit outstanding to 32 per cent with immediate
effect;
- introduce a special term
repo facility of 0.25 per cent of NDTL to compensate fully for the
reduction in access to liquidity under the ECR with immediate effect; and
- continue to provide
liquidity under 7-day and 14-day term repos of up to 0.75 per cent of NDTL
of the banking system.
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.
Current RBI Policy & Reserve
Rates:
|
Repo Rate
|
8% (Unchanged)
|
|
Reverse Repo
|
7% (Unchanged)
|
|
CRR
|
4% (Unchanged)
|
|
SLR
|
22.5% (Changed)
|
|
MSF
|
9% (Unchanged)
|
|
Bank Rate
|
9% (Unchanged)
|
