NEW DELHI, Aug. 10 -- THE RBI Governor, Shri Shaktikanta Das, announced the Resolution of the Monetary Policy Committee (MPC) on Aug 7, 2019 as part of the Third Bimonthly Monetary Policy Statement, 2019-20. The MPC resolved to reduce the Policy Repo Rate under the Liquidity Adjustment Facility (LAF) by 35 bps to 5.40%. Consequently, the Reverse Repo Rate under the LAF fell to 5.15%, and the Marginal Standing Facility (MSF) Rate and the Bank Rate to 5.65% each.
Chart 1 depicts the movement of the Policy Rates over the last year. The Cash Reserve Ratio and the Statutory Liquidity Ratio remained unchanged at four percent and 18.75% respectively of banks' Net Domestic and Time Liabilities.
The Resolution Economic Backdrop (Since Jun-19 MPC M...