RBI hikes key interest rates, focus on fighting inflation

RBI hikes key interest rates, focus on fighting inflationMumbai: In a move to rein in soaring inflation, the country’s central bank Tuesday increased its short tern interest rates and cash reserve ratio by 25 basis points each.

Presenting annual monetary policy for the current fiscal in a meeting of the chief executives of commercial banks, Reserve Bank of India (RBI) Governor D Subbarao announced the rate hike.

The central bank has raised the repo rate to 5.25 percent, reverse repo to 3.75 percent and CRR to 6 percent.