Mid-Term Review of the Annual Policy Statement for 2008-09
Part A-Mid-term Review of the Annual Statement on Monetary Policy for the Year 2008-09
III. Monetary Measures
(a) Bank Rate
115. The Bank Rate has been kept unchanged at 6.0 per cent.
(b) Repo Rate/Reverse Repo Rate
116. The repo rate under the LAF has been kept unchanged at 8.0 per cent.
117. The reverse repo rate under the LAF has been kept unchanged at 6.0 per cent.
118. The Reserve Bank has the flexibility to conduct repo/reverse repo auctions at a fixed rate or at variable rates as circumstances warrant.
119. 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 flexibly 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
120. The cash reserve ratio (CRR) of scheduled banks is currently at 6.5 per cent of net demand and time liabilities (NDTL). On a review of the current liquidity situation, it has been decided to keep the CRR unchanged at 6.5 per cent of NDTL.
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