RBI REPO RATES INCREASED

In terms of ‘Third Quarter Review of Annual Statement on Monetary Policy for the year 2006-07’ Reserve Bank of India (RBI) has decided to increase the fixed repo rate under the Liquidity Adjustment Facility (LAF) of RBI by 25 basis points with effect from Second LAF of January 31, 2007 to 7.50 per cent from 7.25 per cent. The reverse repo rate under the LAF remains unchanged at 6.00 per cent. All other terms and conditions of the current LAF Scheme will remain unchanged.