Following are the highlights of the RBI’s mid-quarter review of the credit policy:
RBI hikes repo rate (short-term lending rate) by 25 basis points to 7.5 per cent.
Reverse repo rate (short-term borrowing rate) hence becomes 6.5 per cent.
Marginal Standing Facility thus rises to 8.5 per cent.
Other key rates and ratios remain unchanged.
RBI says inflation persists at uncomfortable levels.
Central bank says will continue with its anti-inflationary monetary policy.
Inflation spreading to non-food items a cause for concern, says RBI.
Inflation numbers understate the pressure as fuel prices have yet to reflect global crude oil prices.
RBI says global commodity prices moderating, but too early to downgrade this as a risk factor.
Impact of recent monetary policy actions still unfolding, it says.
Economic growth outlook remains unchanged at about 8 per cent for the current fiscal.
45 banks raised base rate by 25-100 basis points after the May 3 annual monetary policy.