Reserve Bank of India (RBI) has announced its Sixth Bi- monthly Monetary Policy Rates for 2018-19 in Mumbai. You can go through the details of Sixth Bi-monthly Monetary Statement below.
The Reserve Bank of India in its Sixth bi – monthly statement 2017-18 has made the following announcements –
- Repo rate under the liquidity adjustment facility (LAF) remains unchanged at 6.25 per cent.
- Consequently, the Reverse repo rate under the LAF remains unchanged at 5.75 per cent.
- Marginal standing facility (MSF) rate and the Bank Rate stand at 6.75 per cent.
- Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) remain unchanged at 4% and 20.50% respectively.
- As per RBI’s report, the decision of the Monetary Policy Committee is consistent with a neutral stance of monetary policy in consonance with the objective of achieving consumer price index (CPI) inflation at 5 per cent by 4th Quarter of 2016-17 and the medium-term target of 4 per cent within a band of +/- 2 per cent, while supporting growth.
Let us now understand some common terms of the Policy rates –
It is the rate at which RBI lends money to commercial banks.
Reverse Repo rate
It is the rate at which RBI borrows money from commercial banks.
Cash Reserve Ratio (CRR)
The share of net demand and time liabilities (deposits) that banks must maintain as cash balance with the Reserve Bank.
The share of net demand and time liabilities (deposits) that banks must maintain in safe and liquid assets, such as, government securities, cash and gold.
It is the rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers for long term.
Marginal Standing Facility Rate (MSF)
The rate at which the scheduled banks can borrow funds from the RBI overnight, against the approved government securities is termed as MSF.
- There is no change in the rates announced today.
- Six members voted in favour of the monetary policy decision. The minutes of the MPC’s meeting will be published by February 22, 2018.
- The next meeting of the MPC is scheduled on April 5 and 6, 2017.
From Result Status Team.