Repo rate hike to cool inflation RBI raised its key short-term lending rate on Wednesday to its highest in nearly four years, as expected, to rein in inflation and temper strong demand for loans. Read on
Statement by Dr. Y.V.Reddy Statement by Dr. Y. Venugopal Reddy, Governor, Reserve Bank of India on the Third Quarter Review of Annual Monetary Policy for the Year 2006-07. Check out
Highlights
CRR and Interest Rates (Source RBI) (% per annum)
Key rates
Jul 2006
Oct 2006
Jan 2007
CRR
5
5
5
Repo Rate
7%
7.25%
7.5%
Reverse Repo
6%
6%
6%
Bank Rate
6
6
6
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RBI hikes repo rate by 25 bps to 7.5%
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RBI leaves CRR unchanged at 5.5%
•
FY07 inflation target seen at 5-5.5%
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RBI keeps bank rate unchanged at 6%
•
Repo rate is rate at which RBI lends money to banks
Managing
liquidity
The RBI will have to use monetary tools to manage the money
market situation, says Minna
Kumar
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Inflation target The RBI aims to bring the inflation rate in the range of 5-5.5 per cent at the earliest, while the medium-term goal is bring it down to 5%. Find out
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A macroeconomic policy tool used to influence interest rates, inflation, and credit availability through changes in the supply. View Slideshow
Repo rate hike to cool inflation
Statement by Dr. Y.V.Reddy
Managing
liquidity
Inflation target
A macroeconomic policy tool used to influence interest rates, inflation, and credit availability through changes in the supply. 