Translate

Wednesday, June 25, 2008

RBI raises lending rate, CRR by 50 bps each

Reserve Bank of India raised its key lending rate on Tuesday and increased the ratio of deposits banks should keep with it by 50 basis points each to curb price pressures after inflation jumped to a 13-year high in early June.

This is the second increase in the lending rate, known as the repo rate, this month. It rises to 8.5 per cent with immediate effect. The cash reserve ratio increases to 8.75 percent from 8.25 percent and will take effect in two stages on July 5 and July 19.

No comments: