Just In: RBI delivers on expected lines; keeps policy repo rate unchanged.

   

     Much in line with expectation, Reserve Bank of India (RBI) in its third bi-monthly monetary policy review, kept policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0% and left cash reserve ratio (CRR) of scheduled banks unchanged at 4.0% of net demand and time liabilities (NDTL).

     The only change made was that in statutory liquidity ratio (SLR) of scheduled commercial banks, which was reduced by 50 basis points from 22.5% to 22.0% of their NDTL with effect from the fortnight beginning August 9, 2014. Meanwhile, central bank decided to continue to provide liquidity under overnight repos at 0.25% of bank-wise NDTL and liquidity under 7-day and 14-day term repos of up to 0.75% of NDTL of the banking system.