Mid Quarter Monetary Policy Review (2013-14) Update

September 20, 2013

·         The policy repo rate under the liquidity adjustment facility (LAF) increased by 25 basis points from 7.25% to 7.5%.

·         Reduced the minimum daily maintenance of the cash reserve ratio (CRR) from 99% of the requirement to 95% effective from the fortnight beginning September 21, 2013, while keeping the CRR unchanged at 4%.

·         Consequently, the reverse repo rate under the LAF stands adjusted to 6.5% and the Bank Rate reduced to 9.5%.

·         Reduced the marginal standing facility (MSF) rate by 75 basis points from 10.25% to 9.5% with immediate effect.

·         The Bank Rate also reduced to 9.5%.

Warm regards,

Dr. S P Sharma