The RBI on Tuesday hiked short-term lending and borrowing rates and the portion of money banks deposit with it by 25 basis points each, in a move aimed at controlling the inflation spiral without choking growth.

The apex bank hiked its repo, reverse repo (overnight lending and borrowing rates) to 5.25 per cent and 3.75 per cent, respectively, while the Cash Reserve Ratio or the portion of deposits banks park with RBI, to six per cent in line with analysts' expectations. The hike in CRR, which will come into effect from April 24, will absorb Rs 12,500-crore excess cash from the banking system.