Pending upgradation in technology and legal/procedural changes to facilitate electronic transfer and settlement, the RBI operationalised an Interim Liquidity Adjustment Facility (ILAF). Under this facility, injection of liquidity to banks/PDs is by way of collateralised lending at predetermined interest rates and absorption of liquidity is by way of fixed rate repos.
What is BSP’s view on the inflation outlook? In our Third Quarter Inflation Report, released in October, we noted that our short run prognosis points to subdued supply pressures and uneven demand conditions. Subsequently, on November 2, the monetary board decided to maintain the BSP’s key policy rates.