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Repo Rate To Be Policy Rate: Raghuram Rajan


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September 20: We believe easing the liquidity measures was warranted given the improving external environment and the narrower CAD, RBI Governor Raghuram Rajan says. “We’ve announced an intention to return to normal market operations, where repo rate will be the effective policy rate and liquidity conditions will ease, he says, adding that the difference between repo rate and MSF will be brought down to 100 bps. In this segment, he talks about the RBI’s measures and the path forward.