RBI Bank Rates and Policy Rates April 2017
The Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) in its 1st Bi-monthly Monetary Policy Statement did not modify the 6.25% existing policy repo rate under liquidity adjustment facility(LAF) due to the present macroeconomic developments happening in the country. In addition, due to the liquidity adjustment factor the reverse repo rate is at 6% and the Marginal standing facility-MSF stands at 6.5%. But RBI in its press release on bank rates adjusted the bank rate by 25 basis points which stood at 6.75% to 6.50%, this adjustment will come into effect from 6th of April 2017.
The RBI Policy rates are as follows with effect from 06-04-2017:
Policy Repo Rate : 6.25% – No Change
Reverse Repo Rate : 6.00% – No change
Marginal Standing Facility Rate(MSFr) : 6.50% – No change
Bank Rate : 6.50% – (-0.25% i.e 25 Basis Points)
RBI also mentioned that the effects of demonetization which are still visible will fade away by Q4 of 2016-2017. It also indicated that the upward movement of inflation in recent days is a cause of concern and poses risk in the 2nd half of the year.
And the evolving macroeconomic data will continue to influence the policy rates in future.