RBI hikes Key Rates 11th time, Repo Rate to 8%

Going against the appeal of the bankers of India, the Reserve Bank of India has hiked the key rates for 11th time to check the high headline inflation in India. The inflation was recorded 9.44 per cent in June and 9.06 per cent in May. The move is however bit necessary to check the inflation trajectory weighing high on Indian economy.

The RBI raised the repo rate to 8 per cent and kept the cash reserve ratio at 6 per cent, unchanged for the banks. This will make the loans like auto, home, personal loans dearer for the customers.

The hike in the key interest rates to have direct impact on the corporate earnings and capital investment too. The BSE yesterday responded heavily to the hike in the key interest rates by the RBI shedding 300 points. The RBI goes for the hike the rates 11th time dampening the economic growth rate.