Reserve Bank of India raises Interest Rate - repo & reverse repo rate by 25bps

As it has been speculated, the Reserve Bank of India (RBI) on Tuesday raised interest rates both repo and reverse repo rate by 25 bps. The hike in interest is to tame the inflation in India. The RBI kept the Cash Reserve Ratio (CRR) unchanged at 6 per cent.

This is the sixth time the RBI has changed in the pattern of repo and reverse repo rate this year.

The change in the interest rate would affect the liquidity in the market and it would help to tame the inflationary pressure on Indian economy.

The food inflation has been the big factor to trigger the inflation rate in India.

Indian economy has been witnessing the high inflation rate for last one year and the inflationary pressure is clearly visible on all the sectors of the economy.