The Reserve Bank of India (RBI) on Tuesday hiked key policy interest rates by 0.25 percent to tame inflation.
Mumbai: RBI's move to hike interest rates by 0.25 percent would make home, automobile and other loans costlier and further dampen industrial growth.
RBI office in Mumbai. File pic
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The repo rate, what banks pay when they borrow money from the RBI to meet their short-term requirements, was increased to 8 percent from 7.75 percent per annum.
The reverse repo rate that the RBI pays to commercial banks when they park their surplus short-term funds with the central bank, has been adjusted to 7 percent.
In its third quarter review of the monetary policy, the RBI also hiked the marginal standing facility rate by 0.25 percent to 9 percent.
However, the cash reserve ratio (CRR) has been kept unchanged at 4 percent.
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