Reserve bank of India has increased repo rate by 50 basis points to 8 percent from 7.5 percent with immediate effect. RBI has also made changed in LAF and MSF with the changes in repo rate. Full circular of Reserve Bank of India is as under.
All Scheduled Commercial Banks (excluding RRBs) and Primary Dealers
Liquidity Adjustment Facility – Repo and Reverse Repo and Marginal Standing Facility Rates
As announced in the First Quarter Review of Monetary Policy 2011-12, it has been decided to increase the repo rate under the Liquidity Adjustment Facility (LAF) by 50 basis points from 7.50 per cent to 8.00 per cent with immediate effect.
2. Consequent to the above increase in the repo rate, the reverse repo rate under the LAF will stand automatically adjusted to 7.00 per cent and the Marginal Standing Facility (MSF) rate to 9.00 per cent with immediate effect.
3. All other terms and conditions of the current LAF and MSF Schemes will remain unchanged.
4. Please acknowledge receipt.
Chief General Manager
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