RBI hikes repo rates by 0.25%

Reserve Bank on Tuesday kept the bank rate and CRR unchanged, but hiked reverse repo and repo rates by 0.25 per cent to 5.5 per cent and 6.5 per cent respectively as part of measures to rein in inflation.

It kept the bank rate unchanged at six per cent and cash reserve ratio at five per cent.

The Monetary and Credit Policy 2005-2006

"In view of the current macroeconomic and overall monetary conditions, it has been decided to increase the fixed reverse repo rate under the LAF of the Reserve Bank by 25 basis points from 5.25 per cent to 5.5 per cent, with immediate effect," RBI said in the policy.

In its mid-term review of the policy in October, RBI had increased the repo and the reverse repo rate by 25 basis points.