Reserve Bank ups repo, reverse repo rates by 25 bps each

Continuing with its anti-inflationary stance, the Reserve Bank of India (RBI), in its mid-quarter policy review, hiked repo and reverse repo rates by 25 basis points (bps) each.

This takes repo (rate at which it lends to banks) to 7.5% and reverse repo (rate at which it borrows) to 6.5%. This is in line with a CNBC-TV18 poll.

The cash reserve ratio (amount of funds that banks have to keep with RBI), however, has been left unchanged at 6%.

Source :http://www.moneycontrol.com/news/business/reserve-bank-ups-repo-reverse-repo-rates-by-25-bps-each_557751.html

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Monindro Saha
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