Friday, September 16, 2011

Credit Policy: RBI hikes repo rate by 25 bps to 8.25%

The Reserve Bank of India (RBI) has raised the Repo and Reverse Rates by quarter of a percent point on Friday(16th sept 2011), while keeping cash reserve ratio (CRR) rate unchanged.
The decision comes as the authorities struggle to control near double-digit
inflation, which is uncomfortably high for more than two years. The repo rate now stands at 8.25%, while the reserve repo gets adjusted to 7.25%. The CRR remains unchanged at 6%.
This was 12th rate hike in the last 18 months by the country's central bank.

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