What is the current repo rate, as per 2nd bi-monthly monetary policy review for 2017-18 of the Reserve Bank of India (RBI)?
Correct Answer: D [6.25%]
As per second bi-monthly monetary and credit policy review for 2017-18 of the Reserve Bank of India (RBI), the policy repo rate under the liquidity adjustment facility (LAF) remain unchanged at 6.25%.
Consequently, the reverse repo rate under the LAF remains at 6.0%, Cash Reserve Ratio (CRR) remains at 4% and the Marginal Standing Facility (MSF) rate and the Bank Rate at 6.50%.
Though, the Central bank has cut the Statutory Liquidity Ratio (SLR) by 0.5%. It has projected inflation in the range of 2% to 3.5% for first half of 2017-18 and 3.5% to 4.5% for the second half.
It has also cut the growth projection for current fiscal to 7.3% from 7.4%.