Part I. Mid-term Review of Annual Statement on
Monetary Policy for the Year 2007-08
Monetary Measures
(a) Bank Rate
102. The Bank Rate has been kept unchanged at 6.0 per cent.
(b) Repo Rate/Reverse Repo Rate
103. The repo rate under the LAF is kept unchanged at 7.75 per cent.
104. The reverse repo rate under the LAF is kept unchanged at 6.0 per cent.
105. The Reserve Bank has the flexibility to conduct repo/reverse repo auctions at a fixed rate or at variable rates as circumstances warrant.
106. The Reserve Bank retains the option to conduct overnight or longer term repo/reverse repo under the LAF depending on market conditions and other relevant factors. The Reserve Bank will continue to use this flexibility including the right to accept or reject tender(s) under the LAF, wholly or partially, if deemed fit, so as to make efficient use of the LAF in daily liquidity management.
(c) Cash Reserve Ratio
107. The cash reserve ratio (CRR) of scheduled banks is currently at 7.0 per cent. On a review of the current liquidity situation, it is considered desirable to increase the CRR by 50 basis points to 7.5 per cent with effect from the fortnight beginning November 10, 2007.
Third Quarter Review
108. The Third Quarter Review of the Annual Policy Statement on Monetary Policy will be undertaken on Tuesday, January 29, 2008
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