CURRENT AFFAIRS

Detailed explanation-1: -liquidity adjustment facility (LAF) by 25 basis points from 6.5 per cent to 6.25 per cent with immediate effect. Consequently, the reverse repo rate under the LAF stands adjusted to 6.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.5 per cent.

Detailed explanation-2: -Press Releases. On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (August 5, 2022) decided to: Increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 5.40 per cent with immediate effect.

Detailed explanation-3: -Year-Ender 2022: RBI’s repo rate hike impact on your money, banks, economy. RBI Repo Rate Hike: The Reserve Bank of India (RBI) recently hiked the repo rate by 35 bps, the fifth such increase in 2022. The repo rate currently stands at 6.25 per cent.

Detailed explanation-4: -III. 1 The conduct of monetary policy in 2018-19 was guided by the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent with a tolerance band of +/- 2 per cent, while supporting growth.