Duel with inflation continues, RBI hikes rate again
June 16th, 2011 - 1:48 pm ICT by IANSMumbai, June 16 (IANS) Continuing its hawkish monetary stance to curb high inflation, the Reserve Bank of India (RBI) Thursday hiked short-term lending rates by 25 basis points, the tenth time it has raised interest rates since March 2010.
The repo rate was raised by 25 basis points from 7.25 percent to 7.5 percent with immediate effect.
“The challenge of containing inflation and anchoring inflation expectations persists,” said the RBI in the mid-quarter monetary policy review.
As per the structural changes announced in the monetary policy for 2011-12, the reverse repo rate stands automatically revised to 6.5 percent.
“While the Reserve Bank needs to continue with its anti-inflationary stance, the extent of policy action needs to balance the adverse movements in inflation with recent global developments and their likely impact on the domestic growth trajectory,” the RBI added.
Latest data showed that annual inflation rose to 9.06 percent in May, compared to 8.66 percent in the previous month.
Other policy rates such as the statutory liquidity ratio and the cash reserve ratio — the minimum quantum of money against deposits which the banks have to retain as cash or specified government securities — have been left untouched.
The bank rate also remains unchanged at 6 percent.
- Duel with inflation continues, RBI hikes rate again, signals more (Lead) - Jun 16, 2011
- Auto, home loans to get costlier as RBI hikes rate again (Roundup) - Jun 16, 2011
- Highlights of monetary policy unveiled by India's central bank - May 03, 2011
- India's central bank likely to raise rates Thursday - Jun 15, 2011
- Highlights of mid-quarter review of RBI monetary policy - Jun 16, 2011
- Indian central bank hikes policy rates again to curb inflation - Mar 17, 2011
- Highlights of third quarter review of monetary policy - Jan 25, 2011
- Inflation forces another rate hike by India's central bank (Second Lead) - May 03, 2011
- RBI adopted a dovish policy: HDFC Bank official - Jan 24, 2012
- Markets unfazed after expected rate hike (Lead) - Jun 16, 2011
- Inflation-focussed RBI hikes rates again, may hold off another revision - Oct 25, 2011
- Interest rate hike will hurt growth, fears FICCI - Jun 15, 2011
- Policy rates up again as Indian central bank acts on inflation (Roundup) - Mar 17, 2011
- Inflation forces India's central bank to hike rates again (Roundup) - May 03, 2011
- Price stability needed to sustain growth: Pranab - Jun 16, 2011
Tags: bank of india, banks, basis points, cash reserve ratio, extent, global developments, government securities, growth trajectory, inflation expectations, interest rates, monetary policy, monetary stance, money, quantum, repo rate, reserve bank of india, reverse repo, statutory liquidity ratio, tenth time