RBI leaves key rates unchanged - Microsec

The Reserve Bank of India (RBI) has come out with its Mid-Quarter Monetary Policy (2013-14) review. The following are the policy measures;

Repo Rate

Keep Repo rate under the liquidity adjustment facility (LAF) unchanged at 7.25 per cent.

Reverse Repo Rate

The reverse repo rate under the LAF, determined with a spread of 100 basis points below the repo rate, stands at 6.25 per cent.

Marginal Standing Facility (MSF) Rate

The MSF rate, determined with a spread of 100 basis points above the repo rate, stands at 8.25 per cent.

Bank Rate

The Bank Rate stands at 8.25 per cent.

Cash Reserve Ratio

Cash Reserve Ratio (CRR) of scheduled banks retained same at 4.00 per cent of their net demand and time liabilities.

Guidance

The Reserve Bank's monetary policy stance will be determined by how growth and inflation trajectories and the balance of payments situation evolve in the months ahead. It is only a durable receding of inflation that will open up the space for monetary policy to continue to address risks to growth. While several measures have been taken to contain the current account deficit, we need to be vigilant about the global uncertainty, the rapid shift in risk perceptions and its impact on capital flows. The Reserve Bank stands ready to use all available instruments and measures to respond rapidly and appropriately to any adverse developments.

Source : Equity Bulls

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