Part I. Annual Statement on Monetary Policy for the Year 2006-07
III. Monetary Measures
(a) Bank Rate
99. The Bank Rate has been kept unchanged at 6.0 per cent.
(b) Reverse Repo Rate
100. In view of the current macroeconomic and overall monetary conditions, it is considered desirable to keep the reverse repo rate unchanged at 5.5 per cent.
101. 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 continue to be 6.5 per cent.
(c) Cash Reserve Ratio
102. The 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.
First Quarter Review
103. The First Quarter Review of this part of the Annual Policy Statement for the year 2006-07 will be undertaken on July 25, 2006.
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