Tuesday, May 3, 2011

Reserve Bank of India Hikes Rate 50bps to 7.25%

The Reserve Bank of India increased its repo rate by 50 basis points to 7.25% from 6.75% and raised the reverse repo rate to 6.25% by the same margin.  The Bank also held the cash reserve ratio at 6.00%, and the Bank Rate at 6.00%, while increasing the savings bank deposit interest rate to 4.00% from 3.50%.  India's key inflation measure, the wholesale price index, increase 8.98% year on year in March, exceeding the Bank's estimate of 8%.



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