With the repo rate at 5.25 per cent in August 2026, where did the standing deposit facility rate and the marginal standing facility rate stand?

Both at 5.25 per centCorrect answerYour answerSDF at 5.00 per cent and MSF at 5.50 per centCorrect answerYour answerSDF at 5.50 per cent and MSF at 5.00 per centCorrect answerYour answerSDF at 4.75 per cent and MSF at 5.75 per centCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

The two rates sit a quarter of a percentage point either side of the repo rate, which is what makes the liquidity adjustment facility a corridor rather than a single rate
The floor is where banks park surplus funds and the ceiling is where they borrow, so the lower figure has to be the deposit side
The Bank Rate moves with the ceiling, also at 5.50 per cent

Concept: The LAF corridor
Typical timeTypical: 60 s
Your timeYours: —

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Written from: rbi.org.in

With the repo rate at 5.25 per cent in August 2026, where did the standing deposit facility rate and the marginal standing facility rate stand?

Explanation