Rbi Cuts Repo Charge Per Unit Of Measurement Past Times 25 Bps – Quaternary Bi-Monthly Policy Review Highlights

The Reserve Bank of Republic of Republic of India (RBI) governor Urjit Patel today (4th Oct 2016) cutting the short-term lending rate, or Repo Rate, yesteryear 25 Earth points to 6.25 per cent from 6.50 per cent earlier. Reverse repo charge per unit of measurement under the LAF stands adjusted to 5.75 per cent, in addition to the Marginal Standing Facility (MSF) rate in addition to the Bank Rate to 6.75 per cent. This was the first practice yesteryear the monetary policy commission (MPC), chaired yesteryear Governor Urjit Patel. All the vi commission members voted inwards favour of the monetary policy decision. The minutes of the MPC’s coming together volition last published on Oct 18.Here are the primary highlights of RBI’s 4th bi-monthly policy review.

Highlights
  • This is Patel’s maiden statement equally RBI Governor.
  • This was the key bank’s quaternary bi-monthly policy contention for the twelvemonth 2016-17.
  • This is for the get-go fourth dimension that decision-making on involvement rates has shifted to the six-member panel (Monetary Policy Committee) which has equal representation from RBI in addition to the government.
  • Since Jan final year, the RBI has cutting the repo-rate – the charge per unit of measurement at which RBI lends to banks – v times. 
  • New Changes inwards Policy Rates :
    • Repo Rate – 6.25% earlier it was 6.50 %
    • Reverse Repo Rate – 5.75 % earlier it was 6.00%
    • MSF –  6.75% earlier it was 7.00%
    • Bank Rate – 6.75 % earlier it was 7.00%
  • The adjacent coming together of the MPC is scheduled on Dec 6 in addition to 7, 2016 in addition to its resolution volition last announced on Dec 7.
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