The Reserve Bank of India [Get Quote] in its mid-term review of the Monetary & Credit Policy for the year 2005-06 on Tuesday kept the bank rate unchanged at 6 per cent.
However, as expected, in view of the current macroeconomic and over all monetary conditions, the reverse repo rate has been increased by 25 basis points with effect from October 26, 2005 to 5.25 per cent from the current level of 5 per cent.
"The repo rate will continue to be linked with the reverse repo rate," RBI said, adding that the spread between the two rates has been retained at 100 basis points at present.
The cash reserve ratio (CRR) kept unchanged at 5 per cent. Accordingly, the fixed repo rate under Liquidity Adjustment Facility would be 6.25 per cent with effect from October 26, 2005.
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