6.25%
The Reserve Bank of India (RBI) has recently released its 4th bi-monthly monetary policy statement for the year 2016-17. As per the monetary policy statement, the policy repo rate under the Liquidity Adjustment Facility (LAF) has cut by 25 bps to 6.25 %, the reverse repo rate under the LAF stands adjusted to 5.75 % and the Marginal Standing Facility (MSF) rate and the Bank Rate to 6.75 % and also Statutory Liquidity Ratio (SLR) is at 20.75 %. The decision to cut interest rates is consistent with the aim of achieving a midterm inflation target of 4 % within a band of + or – 2 %. Though, the RBI has kept the Cash Reserve Ratio (CRR) of scheduled banks unchanged at 4.0 % of Net Demand and Time Liabilities (NDTL). It is first time that the newly constituted Monetary Policy Committee (MPC) has made India’s first collective interest rate decision. The next monetary policy review will be announced on December 7, 2016.