RBI hikes repo rate to curb inflation
CommodityOnline MUMBAI: The Reserve Bank of India (RBI) on Thursday increased the short-term repo rate by 0.25 per cent to 7.50 per cent to curb the surging inflation that has become a major worry for the Manmohan Singh government.
In the third quarterly review of the monetary policy, the apex banking regulator kept reverse repo, bank rate and CRR unchanged. The key rates have been kept unchanged—the bank rate at 6 per cent, reverse repo rate at 6 per cent and CRR at 5.5 per cent.
Repo rate is the rate at which the RBI buys securities to infuse liquidity in the system. The increase in repo rate was on expected lines as RBI had given enough indications in its macroeconomic review on January 29, 2007 that the underlying inflationary pre ssures continue.
NCDEX SOYBEANINDOREJUN12 20 June 2012
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