Rs 1 trillion repos to help better monetary policy transmission: RBI

RBI Governor Shaktikanta Das | Photo: Kamlesh Pednekar

RBI Governor Shaktikanta Das on Thursday said the decision to conduct new one-year and three-year repos worth Rs 1 trillion, is aimed at ensuring better monetary policy transmission.

In the sixth bi-monthly policy, the Reserve Bank of India (RBI) announced term repurchase agreements (repos) of one-year and three-year tenors of appropriate sizes for a total amount of Rs 1 trillion at the policy repo rate, from the fortnight beginning on February 15.

"It is an effort to ensure better monetary policy transmission. It will enable banks to reduce their lending rates," Das told reporters in the post policy conference.

The RBI has cumulatively cut the repo rate by 135 basis since February 2019 to a nine-year low of 5.15 per cent.

He said monetary transmission across various money market segments and the private corporate bond market has been sizable.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel