Recent changes - may 3 2013
Reserve Bank of India (RBI) on 3 May 2013 reduced the policy repo rate
under the liquidity adjustment facility (LAF) by 25 basis points, from
7.5 per cent to 7.25 per cent with immediate effect as part of its
annual monetary policy statement 2013-14. The reverse repo rate under
the LAF also stands adjusted to 6.25 per cent. The RBI took this step to
boost flagging economic growth.
The Marginal Standing Facility
(MSF) rate and the Bank Rate, both stand adjusted to 8.25 per cent with
immediate effect. The cash reserve ratio (CRR) of scheduled banks has
however been retained at 4 per cent of their net demand and time
In its Monetary Policy Statement the RBI has stated
that the balance of risks stemming from the Reserve Bank's assessment of
the growth-inflation dynamic yields little space for further monetary
easing. Interest rates on home and car loans will ease following RBI’s
decision to cut key policy rates. The next mid-quarter review of
Monetary Policy for 2013-14 will be announced on17 June 2013.
source: BANKING SERVICE CHRONICLE FACEBOOK.
Recent changes - may 3 2013 Reviewed by sambasivan srinivasan on 8:02:00 AM Rating: 5
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