RBI hiked Repo Rate by 25 basis points to 7.75 %

As per the Second Quarter Review of Monetary Policy 2013-14 released by the Reserve Bank of India (RBI), the Repo rate has been increased by 25 basis points from 7.5% percent to 7.75% keeping in view the surge in inflation and other factors.

Key points of the Second Quarter Review of Monetary Policy 2013-14:

Marginal Standing Facility (MSF) rate slashed by 25 basis points from 9% to 8.75%.

• Policy repo rate under the Liquidity Adjustment Facility (LAF) hiked by 25 basis points from 7.5% to 7.75%.
• The liquidity provided through term repos of 7-day and 14-day tenor has been enhanced from 0.25% of Net Demand and Time Liabilities (NDTL) of the banking system to 0.5%.
• Cash Reserve Ratio (CRR) untouched at 4%.

The GDP growth projection for 2013-14 has been reduced to 5% from previous 5.7%.

Month: Current Affairs - October, 2013