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