Fifth Bi-monthly Monetary Policy Statement, 2015-16
By Dr. Raghuram G. Rajan, Governor
Monetary and Liquidity Measures On the basis of an assessment of the current and evolving macroeconomic situation, it has been decided to:
• keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.75 per cent;
• keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liability (NDTL);
• continue to provide liquidity under overnight repos at 0.25 per cent of bankwise NDTL at the LAF repo rate and liquidity under 14-day term repos as well as longer term repos of up to 0.75 per cent of NDTL of the banking system through auctions; and
• continue with daily variable rate repos and reverse repos to smooth liquidity. Consequently, the reverse repo rate under the LAF will remain unchanged at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 7.75 per cent
