As widely expected the Reserve Bank of India raised repo (rate at which it lends to banks) and reverse repo (rate at which it borrows) rates by 25 basis points each, taking the repo to 6.75% and reverse repo to 5.75%. However, the CRR has been left unchanged at 6%.
The bank also raised March-end inflation forecast to 8% from 7% earlier, leaving GDP growth forecast unchanged at 8.6%. RBI, in its mid-term credit policy said that rising commodity prices was adding to GDP and inflation risk.
A CNBC-TV18 poll of bankers and economists had shown that 70% of those polled expected the RBI to hike the repo rate by 25 bps to 6.75% and 65% expected a 25 bps hike in the reverse repo rate to 5.75%.
A CNBC-TV18 poll of bankers and economists had shown that 70% of those polled expected the RBI to hike the repo rate by 25 bps to 6.75% and 65% expected a 25 bps hike in the reverse repo rate to 5.75%.
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