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click here for Main Page of Third Quarter Review



Monetary Measures- Third Quarter Review 2005-06


(a) Bank Rate

The Bank Rate has been kept unchanged at 6.0 per cent.

(b) Reverse Repo Rate

In view of the current macroeconomic and overall monetary conditions, it has been decided:
To increase the fixed reverse repo rate under the liquidity adjustment facility (LAF) of the Reserve Bank by 25 basis points from 5.25 per cent to 5.50 per cent, with immediate effect.

The repo rate will continue to be linked to the reverse repo rate. The spread between the reverse repo rate and the repo rate has been retained at 100 basis points, as at present. Accordingly, the fixed repo rate under LAF will be 6.50 per cent, with immediate effect.

(c) Cash Reserve Ratio

The cash reserve ratio (CRR) of scheduled banks is currently at 5.0 per cent. While the Reserve Bank continues to pursue its medium-term objective of reducing the CRR to the statutory minimum level of 3.0 per cent, on a review of the current liquidity situation, it is felt desirable to keep the present level of CRR at 5.0 per cent unchanged.

>>> Other RBI Policies




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