Friday, September 16, 2011

RBI hikes repo, reverse repo rates by 25 bps; loans to get costlier

India's central bank raised interest rates on Today (16sep.11) for the 12th time in 18 months and said it will persist with its anti-inflationary policy stance, even as growth slows in Asia's third-largest economy.

The repo rate, or the interest the central bank levies on short-term borrowing by commercial banks, has been raised to 8.25 percent from 8 percent. Automatically, the reverse repo rate, or interest on short-term lending, gets hiked to 7.25 percent from 7 percent.

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