Part I. Annual Statement on Monetary Policy for the Year 2007-08
III. Monetary Measures
105.The Bank Rate has been kept unchanged at 6.0 per cent.
(b)Reverse Repo Rate/Repo Rate
106.In view of the current macroeconomic and overall monetary conditions, it has been decided to keep the fixed reverse repo rate and repo rate under the LAF unchanged at 6.00 per cent and 7.75 per cent, respectively.
107.The Reserve Bank retains the option to conduct overnight repo or longer term 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
108.Scheduled banks are required to maintain cash reserve ratio (CRR) of 6.5 per cent with effect from the fortnight beginning April 28, 2007 as announced on March 30, 2007.
First Quarter Review
109.The First Quarter Review of this part of the Annual Policy Statement for the year 2007-08 will be undertaken on July 31, 2007.
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