Question
As per the RBI’s 1st Bi-monthly Monetary Policy of
FY27, at what rate did the MPC keep the repo rate under the Liquidity Adjustment Facility (LAF)?Solution
In the 1st Bi-monthly Monetary Policy of FY27, the MPC kept the repo rate unchanged under the Liquidity Adjustment Facility (LAF) at 5.25% and maintained a ‘Neutral’ policy stance, citing heightened uncertainty after the West-Asia conflict which drove crude prices sharply higher, weakened the rupee, and disrupted trade supply chains. Consequently, the MPC retained the Standing Deposit Facility (SDF) rate at 5.00% and the Marginal Standing Facility (MSF) rate and the Bank Rate at 5.50%.
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