FOURTH BI-MONTHLY MONETARY POLICY STATEMENT, 2016-17
On the basis of an
assessment of the current and evolving macroeconomic situation at its meeting
today, the Monetary Policy Committee (MPC) decided to:
• reduce the policy
repo rate under the liquidity adjustment facility (LAF) by 25 basis points from
6.5 per cent to 6.25 per cent with immediate effect.
Consequently, the
reverse repo rate under the LAF stands adjusted to 5.75 per cent, and the
marginal standing facility (MSF) rate and the Bank Rate to 6.75 per cent.
The decision of the MPC
is consistent with an accommodative stance of monetary policy in consonance
with the objective of achieving consumer price index (CPI) inflation at 5 per
cent by Q4 of 2016-17 and the medium-term target of 4 per cent within a band of
+/- 2 per cent, while supporting growth.
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CURRENT RATES
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||
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POLICY RATES
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BANK RATE
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6.75 %
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REPO RATE
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6.25 %
|
|
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REVERSE REPO RATE
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5.75 %
|
|
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MARGINAL STANDING FACILITY RATE
|
6.75 %
|
|
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RESERVE RATIO
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CRR
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4%
|
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SLR
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20.75 %
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|
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LENDING RATE
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BASE RATE
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9.30% - 9.70%
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The next meeting of the
MPC is scheduled on December 6 and 7, 2016 and its resolution will be announced
on December 7, 2016.
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