The Reserve Bank of India increased the repo rate by 50 basis points at its previous meeting. India's key inflation measure, the wholesale price index, increased 9.06% in May, after rising 8.66% in April, and 8.98% year on year in March, exceeding the Bank's previous estimate of 8%.
Thursday, June 16, 2011
Reserve Bank of India Raises Repo Rate 25bps to 7.50%
The Reserve Bank of India increased its repo rate by 25 basis points to 7.50% from 7.25% and raised the reverse repo rate to 6.50% by the same margin. The Bank said: "while the Reserve Bank needs to continue with its anti-inflationary stance, the extent of policy action needs to balance the adverse movements in inflation with recent global developments and their likely impact on the domestic growth trajectory."