The RBI Nowadays Increased Reverse Repo By 25 Basis Points

The RBI Nowadays Increased Reverse Repo By 25 Basis PointsThe RBI nowadays increased its shortterm lending as well as borrowing rates for the 8th time ever since March 2010 by 25 basis-points in a bid to control in inflation.

The shortterm lending rate (repo) continues to be raised from 6.5 % to 6.75 percent, even though the short-term borrowing rate (reverse repo) has been increased to 5.75 percent from 5.5 percent.

Rise in rates through the RBI is anticipated to make loans, such as auto, housing and corporate loans, dearer.

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