On a review of current macroeconomic and overall
monetary conditions, the Reserve Bank of India has decided to increase the reverse
repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points to
5.75 per cent from 5.50 per cent with immediate effect.
Simultaneously, the repo rate under the
LAF, which continues to be linked to the reverse repo rate with a spread of
100 basis points, is also being increased by 25 basis points to 6.75 per cent
from 6.50 per cent with immediate effect.
Chief General Manager
Press Release : 2005-06/1599