Third Quarter Review of the Annual Policy Statement for 2007-08
III. Monetary Measures
(a) Bank Rate
102. The Bank Rate has been kept unchanged at 6.0 per cent.
(b) Repo Rate/Reverse Repo Rate
103. The repo rate under the LAF is kept unchanged at 7.75 per cent.
104. The reverse repo rate under the LAF is kept unchanged at 6.0 per cent.
105. The Reserve Bank has the flexibility to conduct repo/reverse repo auctions at a fixed rate or at variable rates as circumstances warrant.
106. 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 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
107. The cash reserve ratio (CRR) of scheduled banks is currently at 7.5 per cent. On a review of the current liquidity situation, it is considered desirable to keep the present level of the CRR at 7.5 per cent unchanged.