Page-3 of Liquidity adjustment facility Current Affairs, GK & News
According to the Reserve Bank of India (RBI)’s 3rd bi-monthly monetary policy statement for year 2016-17, the policy repo rate under the Liquidity Adjustment Facility (LAF) has reduced by 25 basis points from 6.25% to 6.0% with immediate effect. This move is expected to lower EMIs for home, auto and personal loans. This is the ..
Topics: Bank rate • Economy • Finance • Finance in India • Inflation • Interest rate • Interest Rates • Liquidity adjustment facility • Monetary Policy • Money • Repurchase agreement • Reserve Bank of India
Background: The Reserve Bank began exiting from the crisis driven expansionary policy in October 2009. Between January 2010 and October 2011, the Reserve Bank cumulatively raised the cash reserve ratio (CRR) by 100 basis points and the policy rate (the repo rate) 13 times by 375 basis points. This monetary policy response was calibrated on ..