RBI hikes repo rate by 25 basis points
Concerned over surging inflation, RBI on Wednesday hiked the short-term repo rate by 0.25 per cent to 7.50 per cent while keeping reverse repo, bank rate and CRR unchanged.
Repo rate is the rate at which the RBI buys securities to infuse liquidity in the system. The hike was on expected lines as the central bank had given enough indications in its macroeconomic review on January 29, 2007 that the underlying inflationary pressures continue.
It kept all the key rates unchanged with the bank rate at 6 per cent, reverse repo rate at 6 per cent and CRR at 5.5 per cent.