RBI hikes key interest rates by 25 basis points
November 2nd, 2010 - 1:22 pm ICT by IANSMumbai, Nov 2 (IANS) The Reserve Bank of India (RBI) Tuesday hiked its short-term borrowing and lending rates by 25 basis points, continuing with its tight monetary policy stance to tame inflation, but hinted that the rates would not undergo any more changes in the immediate future.
The repurchase rate now stands revised to 6.25 percent from the earlier 6 percent, while the reverse repurchase rate has been hiked to 5.25 percent from 5 percent. The cash reserve ratio (CRR) has been kept unchanged.
“Based purely on current growth and inflation trends, the Reserve Bank believes that the likelihood of further rate actions in the immediate future is relatively low,” said RBI Governor D.Subbarao.
The RBI said Monday that inflation needed to come down from current levels for interest rate hikes to ease off.
In the previous mid-quarter review Sep 16, the central bank had hiked its short-term borrowing and lending rates by 50 basis points and 25 basis points.
Inflation has been the driving force behind the tweaking of interest rates, something the central bank has now done six times this year.
The overall annual inflation rate has fallen in recent months, but is still at a high level of 8.62 percent as recorded in September. The 52-week rise in food prices is also in double-digits at 13.75 percent for the week ended Oct 16.
- India's central bank hikes rates again to fix inflation (Lead) - Nov 02, 2010
- India's central bank to review monetary policy Tuesday - Oct 29, 2010
- Inflation needs to come down for rate hikes to ease: RBI - Nov 01, 2010
- Highlights of Indian central bank's monetary policy update - Jul 26, 2011
- India's central bank hikes rates again to tame inflation - May 03, 2011
- India's central bank hikes rates again to fix inflation (Roundup) - Nov 02, 2010
- Rate hike fears in India's monetary policy review Tuesday - Nov 01, 2010
- PNB, Allahabad Bank hike lending, deposit rates - Jul 29, 2011
- India's central bank halts rate hikes on lower inflation (Lead) - Dec 16, 2011
- Inflation prompts India's central bank to hike rates again - Jul 26, 2011
- RBI hikes short-term lending, borrowing rates by 25 basis points - Nov 02, 2010
- Union Bank of India hikes base rate by 50 basis points - Aug 06, 2011
- Inflation will come down to 7 percent by March: RBI - Oct 25, 2011
- Indian central bank hikes policy rates again to curb inflation - Mar 17, 2011
- Petrol price hike to marginally push inflation up: RBI - Sep 16, 2011
Tags: annual inflation rate, bank of india, basis points, cash reserve ratio, crr, double digits, driving force, food prices, immediate future, interest rate hikes, likelihood, mid quarter, monetary policy stance, nov 2, rbi governor, reserve bank of india, six times, tame inflation, tight monetary policy, tweaking