RBI hikes Repo rate and Reverse Repo Rate

The Reserve Bank of India today hiked its key interest rates-Repo Rate and Reverse Repo Rate- by 25 basis points to ease inflationary pressures. The Repo rate, the one at which RBI lends to banks will now be 6.50 percent. Reverse Repo Rate, the rate banks receive for depositing funds with the central bank will be at 5.50percent. Cash reserve ratio, the proportion of deposits that banks have to keep aside, was left untouched at 6 percent.