Repo Rate and the Liquidity Adjustment Facility (LAF)
The repo rate is the rate at which the RBI lends short-term funds to commercial banks against government securities, and is RBI's primary tool for signalling the stance of monetary policy. It operates within the Liquidity Adjustment Facility (LAF) corridor, which also includes the Standing Deposit Facility (SDF) as the floor and the Marginal Standing Facility (MSF) as the ceiling.
- A rate hold keeps borrowing costs for banks unchanged, which in turn keeps lending and deposit rates broadly stable across the banking system
- The RBI's monetary policy stance (accommodative, neutral, or withdrawal of accommodation/hawkish) signals the likely future direction of rates, distinct from the rate decision itself
- The MPC meets bi-monthly (six times a year) as mandated under the RBI Act framework
● Tracked since August 02, 2026 · last seen August 19, 2026 · updates as the daily brief publishes
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