RBI reduced policy repo rate by 50 bps to 6.75% in its 4th Monetary Policy Review on September 29, 2015. Consequently, the reverse repo rate stands at 5.75% and the Marginal Standing Facility (MSF) rate at 7.75%.
CRR and SLR are held unchanged at 4% and 21.5% of NDTL respectively.
Additionally, RBI laid out a Medium Term Framework for FPI investment in debt securities as also the forward path for SLR-HTM rate cuts.
The forward guidance indicated comfort on inflation – with Jan-16 CPI inflation projections revised downwards by 20 bps to 5.8%. However, FY16 output growth projections have been revised downwards to 7.4% from 7.6%. With a view to provide impetus to growth, RBI front loaded its policy action. Going forward, RBI’s monetary stance will continue to stay accommodative.