RBI keeps key rate unchanged
"Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 7.75 per cent," the RBI said in a statement.
The bank also kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL).
The RBI, however, reduced the statutory liquidity ratio (SLR) of scheduled commercial banks by 50 basis points from 22.0 per cent to 21.5 per cent of their NDTL with effect from the fortnight beginning Feb 7.
The RBI said it has decided to replace the export credit refinance (ECR) facility with the provision of system level liquidity with effect from Feb 7.
It said it has decided to continue to provide liquidity under overnight repos of 0.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity under 7-day and 14-day term repos of up to 0.75 per cent of NDTL of the banking system through auctions and 'continue with daily variable rate term repo and reverse repo auctions to smooth liquidity'.
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