Highlights of RBI's lifting key rates
The Reserve Bank of India on Tuesday raised key interest rates by 25 basis points, as expected, tightening policy for the second month in a row as it battles inflation near double digits.
The Reserve Bank of India (RBI) on Tuesday raised key interest rates by 25 basis points, as expected, tightening policy for the second month in a row as it battles inflation near double digits.
Following are highlights from the policy.
* Lifts repo rate by 25 bps to 5.25 pct
* Lifts reverse repo rate by 25 bps 3.75 pct
* Rate hikes effective immediately
* Raises cash reserve ratio for banks by 25 bps
* CRR increased to 6.0 pct effective April 24
* RBI sees baseline whole price index (WPI) at 5.5 pct at end March 2011
* RBI sees 2010/11 GDP growth at 8 pct with upside bias
* Says developments on inflation "worrisome"
* Says global commodity prices could add to inflationary pressures
* Sees 2010/11 money supply growth at 17 pct, non-food credit growth of commercial banks at 20 pct
