In anticipation of a heavy monsoon, hopeful RBI governor says that bouts of food inflation should come down, and thus has not changed lending rates by banks and financial institutions.

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Here are five key facts that you ought to know about the monetary policy.

1.     Banks will continue to borrow money at 6.5% as the Repo rate remains unchanged under LAF.

2.     Scheduled banks to maintain Cash reserve ratio (CRR) at 4.0 % of net demand and time liabilities (NDTL).

3.     Banks will also continue to provide liquidity as required but progressively lower the average exante liquidity deficit in the system from 1% of NDTL to a position closer to neutrality.

4.     The reverse repo rate under the LAF will remain unchanged at 6.0 %

5.     The marginal standing facility (MSF) rate and the Bank Rate at 7.0 %.