RBI hikes reverse repo rate by 25 basis pts

Reserve Bank increased the reverse repo rate by 25 basis points to 5.75% from 5.50% with immediate effect.

The Reserve Bank of India on Thursday increased the reverse repo rate by 25 basis points to 5.75 per cent from 5.50 per cent with immediate effect.

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Simultaneously, the repo rate under the liquidity adjustment facility, which continues to be linked to the reverse repo rate, has also been increased by 25 basis points to 6.75 per cent from 6.50 per cent with immediate effect.

"On a review of current macro-economic and overall monetary conditions, the RBI has decided to increase the reverse repo rate under the liquidity adjustment facility to 5.75 per cent from the present 5.50 per cent," a RBI statement said.