Question

The RBI MPC voted unanimously to keep the repo rate unchanged at 5.25% in June 2026. Consequently, which of the following correctly states the Standing Deposit Facility (SD

Q: Answer-The RBI MPC voted unanimously to keep the repo rate unchanged at 5.25% in June 2026. Consequently, w...

The RBI MPC June 2026 resolution states that with the policy repo rate at 5.25, the corridor is structured as follows SDF rate Repo rate minus 25 bps 5.25 0.25 5.00 MSF rate Repo rate plus 25 bps 5.25 0.25 5.50. The Bank Rate also equals the MSF rate at 5.50. This LAF corridor design with SDF at the floor and MSF at the ceiling determines the band within which overnight interbank rates are expected to move. The resolution explicitly confirmed the SDF rate remains at 5.00 and the MSF rate and the Bank Rate remain at 5.50.