Annual Policy Statement for the Year 2009-10- 21st April 2009
Part I Annual Statement on Monetary Policy for the Year 2009-10
III. Monetary Measures
76. The Bank Rate has been retained unchanged at 6.0 per cent.
77. It is proposed:
• to reduce the repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 5.0 per cent to 4.75 per cent with immediate effect.
Reverse Repo Rate
78. It is proposed:
• to reduce the reverse repo rate under the LAF by 25 basis points from 3.5 per cent to 3.25 per cent with immediate effect.
79. The Reserve Bank has the flexibility to conduct repo/reverse repo auctions at a fixed rate or at variable rates as circumstances warrant.
80. 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.
Cash Reserve Ratio
81. The cash reserve ratio (CRR) of scheduled banks has been retained unchanged at 5.0 per cent of net demand and time liabilities (NDTL).
First Quarter Review
82. The First Quarter Review of Monetary Policy for 2009-10 will be undertaken on July 28, 2009.
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