Reserve Bank of India has increased liquid adjustment facility(LAF) by 25 basis points. RBI has presented the second quarter monetary policy of 2011-12 while increased the LAF. RBI has increased LAF by 25 basis points from 8.25% to 8.5% with immediate effect.
Accordingly the Repo rate as well as revised repo rate has been increased to 8.5% whereas Marginal standing facility(MSF) has been increased to 9.5%.