Friday, 16 September 2011
RBI Announced Reverse repo rate hiked 25 basis points
The short-term lending (or repo) rate at which banks borrow from the RBI stands increased to 8.25 per cent and the short-term borrowing (reverse repo) rate at which banks park their funds with the RBI to 7.25 per cent.
Headline inflation rose to 9.8 per cent in the month of August from 9.2 per cent in July this year.
Despite the RBI hiking rates several times since March, headline and food inflation are close to double digits.
"As such, a premature change in the policy stance could harden inflationary expectations, thereby diluting the impact of past policy actions. It is, therefore, imperative to persist with the current anti-inflationary stance," the RBI said in its mid-quarter review of the monetary policy.
Headline inflation rose to 9.8 per cent in the month of August from 9.2 per cent in July this year.
Despite the RBI hiking rates several times since March, headline and food inflation are close to double digits.
"As such, a premature change in the policy stance could harden inflationary expectations, thereby diluting the impact of past policy actions. It is, therefore, imperative to persist with the current anti-inflationary stance," the RBI said in its mid-quarter review of the monetary policy.
