Tuesday, 29 October 2013

Second Quarter Review of Monetary Policy 2013-14

Second Quarter Review of Monetary Policy 2013-14 presented by RBI Governor Dr. Raghuram G. Rajan. Major decision taken are as under:

1) Reduced the marginal standing facility (MSF) rate by 25 basis points from 9.0 per cent to 8.75 per cent with immediate effect;

2) Increased the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.5 per cent to 7.75 per cent with immediate effect;

3) The liquidity provided through term repos of 7-day and 14-day tenor has been increased from 0.25 per cent of net demand and time liabilities (NDTL) of the banking system to 0.5 per cent with immediate effect.

4) CRR unchanged at 4%.

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