First Quarter Review of the Monetary Policy for 2010-11
-Announced on the 27th July 2010
IV. Monetary Measures
61. On the basis of the current assessment and in line with the policy stance as outlined in Section III, the Reserve Bank announces the following policy measures:
62. The Bank Rate has been retained at 6.0 per cent.
63. It has been decided to:
increase the repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 5.5 per cent to 5.75 per cent with immediate effect.
Reverse Repo Rate
64. It has been decided to:
increase the reverse repo rate under the LAF by 50 basis points from 4.0 per cent to 4.50 per cent with immediate effect.
Cash Reserve Ratio
65. The cash reserve ratio (CRR) of scheduled banks has been retained at 6.0 per cent of their net demand and time liabilities (NDTL).
66. Monetary policy actions are expected to:
a. Moderate inflation by reining in demand pressures and inflationary expectations.
b. Maintain financial conditions conducive to sustaining growth.
c. Generate liquidity conditions consistent with more effective transmission of policy actions.
d. Reduce the volatility of short-term rates in a narrower corridor.
First Quarter Review of Monetary Policy 2010-2011... click here
Highlights of 1st Quarter Review of Monetary Policy 2010-2011... click here
RBI CREDIT AND MONETARY POLICIES (1999-2010)... click here