RBI announced Third bi-monthly monetary policy 2016-17

Mumbai headquartered Reserve Bank of India announced Third Bi-Monthly Monetary policy for the year financial year 2016-17 and keeping unchanged the Policy rates and Reserve ratios.

Monetary and Liquidity Measures:

On the basis of an assessment of the current and evolving macroeconomic situation, it has been decided to:

• Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5 per cent;
• Keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL); and
• Continue to provide liquidity as required but progressively lower the average ex ante liquidity deficit in the system from one per cent of NDTL to a position closer to neutrality.
• Consequently, the reverse repo rate under the LAF will remain unchanged at 6.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 7.0 per cent.