Reserve Bank of Indian announced its third bimonthly monetary policy of this financial year. The meeting held around 11am on 9 August, 2016. In that meeting they have decided to not do any change in current repo rate.This would be the last money policy of RBI Governor Dr Raghuram Rajan. The tenure of RBI Governor Dr Raghuram Rajan would be over by 4 September with the central bank.
According to the market experts if RBI Governor Dr Raghuram Rajan stays with central bank he might do change the repo rate. RBI Governor Dr Raghuram Rajan has already observed the monsoon, which would be over within next few days
Finally the rapo rate remain unchanged
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.More clarification click repo rate