- Repo rate increased by 25 basis points to 6.0%, and
- reverse repo rate increased by 50 basis points to 5.0%
The measures undertaken in this review should:The decision was announced by the Reserve Bank of India at the Mid-Quarter Monetary Policy Review, today.
- contain inflation and anchor inflationary expectations without disrupting growth.
- reduce the volatility in overnight call money rates, thereby strengthening the monetary transmission mechanism.
- continue the process of normalisation of the monetary policy instruments.
Reacting to the RBI's measures, some bankers have already said that they would have to raise their commercial lending and deposit rates.