RBI Measures on 27 to combat Covid-19 crisis

RBI Measures on 27 to combat Covid-19 crisis

Friday, March 27 2020

1. Reduction in Repo rate: RBI reduces repo rate by 75 basis points from 5.15% to 4.40% on 27 March 2020 amid Covid-19 crisis.

2. Widening of the Monetary Policy rate Corridor: In view of persistent excess liquidity, it has been decided to widen the existing policy rate corridor from 50 bps to 65 bps. Under the new corridor, the reverse repo rate under the liquidity adjustment facility (LAF) would be 40 bps lower than the policy repo rate. The marginal standing facility (MSF) rate would continue to be 25 bps above the policy repo rate.

1. Reduction in Repo rate: RBI reduces repo rate by 75 basis points from 5.15% to 4.40% on 27 March 2020 amid Covid-19 crisis.

2. Widening of the Monetary Policy rate Corridor: In view of persistent excess liquidity, it has been decided to widen the existing policy rate corridor from 50 bps to 65 bps. Under the new corridor, the reverse repo rate under the liquidity adjustment facility (LAF) would be 40 bps lower than the policy repo rate. The marginal standing facility (MSF) rate would continue to be 25 bps above the policy repo rate.

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