Reserve Bank ups repo

Continuing with its anti-inflationary stance, the Reserve Bank of India (RBI), in its mid-quarter policy review, hiked repo and reverse repo rates by 25 basis points (bps) each.

This takes repo (rate at which it lends to banks) to 7.5% and reverse repo (rate at which it borrows) to 6.5%. This is in line with a CNBC-TV18 poll. The cash reserve ratio (amount of funds that banks have to keep with RBI), however, has been left unchanged at 6%.