RBI group recommends switch to one-policy rate

rbi-tower

The Reserve Bank of India (RBI) should move to a single-policy rate in order to better signal the stance on monetary policy, an internal working group on Tuesday said.

The Reserve Bank at present has two policy rates: the repo rate, which represents the cost of borrowing from the central bank; and the reverse repo rate, the charge levied on banks' funds held at the RBI. However, the working group recommended that the central bank adopt the repo rate as its sole policy rate.

"The repo rate should

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.