Monthly Archives: April 2010

RBI lifts key rates, CRR by 25 bps

The Reserve Bank of India (RBI) today raised key interest rates by 25 basis points, as expected, tightening policy for the second month in a row as it battles inflation near double digits.

Following are highlights from the policy.

* Lifts repo rate by 25 bps to 5.25 per cent.

* Lifts reverse repo rate by 25 bps to 3.75 per cent

* Rate hikes effective immediately

* Raises cash reserve ratio for banks by 25 bps

* CRR increased to 6.0 per cent effective April 24

* RBI sees baseline whole price index (WPI) at 5.5 per cent at end March 2011

* RBI sees 2010/11 GDP growth at 8 per cent with upside bias

* Says developments on inflation “worrisome”

* Says global commodity prices could add to inflationary pressures

* Sees 2010/11 money supply growth at 17 per cent, non-food credit growth of commercial banks at 20 per cent.