In order to tame inflation the Reserve Bank announces the following policy measures in the first quarter review of Monetary Policy 2011-12:
- Increased the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points from 7.5 per cent to 8.0 per cent with immediate effect.
- The reverse repo rate under the LAF, determined with a spread of 100 basis points below the repo rate, automatically adjusts to 7.0 per cent with immediate effect.
- The Marginal Standing Facility (MSF) rate, determined with a spread of 100 basis points above the repo rate, stands recalibrated at 9.0 per cent with immediate effect.
- The Bank Rate has been retained at 6.0 per cent.
- The cash reserve ratio (CRR) of scheduled banks has been retained at 6.0 per cent of their net demand and time liabilities (NDTL).
Source : RBI Website
Also See : Current Policy Rates and Reserve Ratios (SLR, CRR, Bank Rate, Repo, Reverse Repo)
