RBI HAS INCREASED REPO RAE BY 25 BASIS POINT

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%.