The Reserve Bank of India has announced its Monetary Policy Statement for 2013 – 14. Announcing the Statement RBI Governor Dr. D. Subbarao highlighted the various points of the annual monetary policy statement. The important points of the monetary policy statements are as under:
- Policy repo rate under the liquidity adjustment facility (LAF) has been reduced by by 25 basis points, from 7.5 per cent to 7.25 per cent with immediate effect.
- The reverse repo rate under the LAF also stands adjusted to 6.25 per cent. The RBI took this step to boost flagging economic growth.
- The Marginal Standing Facility (MSF) rate and the Bank Rate, both stand adjusted to 8.25 per cent with immediate effect.
- The cash reserve ratio (CRR) of scheduled banks has however been retained at 4 per cent of their net demand and time liabilities.