Third Bi-monthly Monetary Policy Statement, 2017-18
Policy repo rate reduced by 25bps to 6%
On the basis of an assessment of the current and evolving macroeconomic situation at the meeting today, the Monetary Policy Committee (MPC) of RBI decided to
· Reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 6.25 per cent to 6.0 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 6.25 per cent.
· The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.
