Mumbai, Oct. 1 -- The Reserve Bank on Tuesday announced that it will continue to use the overnight weighted average call rate (WACR) as the operating target of the monetary policy. The Reserve Bank will, however, continue to keep track of rates in other overnight money market segments to ensure orderly evolution of money market rates and smoothen transmission, it said. WACR is the average interest rate at which banks borrow and lend funds to each other for a short period, typically overnight, in the inter-bank call money market.

Further, the existing symmetric corridor system - aimed at stabilizing overnight market rates - is retained with repo rate at the middle and standing deposit facility (SDF) and marginal standing facility (MSF) on...