RBI increased Repo rate by 25 base points
- Now it is 6.29%
- High repo rate - Hokish
- Low repo rate - Doubish
- first time in 4.5 years
- Earlier was in January 2014
- RBI increased inflation projection to 4.8%-4.9% first to second half
- Reverse repo rate shall be 6%
- Bank rate - 6.5%
- MSF - 6.5%
- GDP 7.4%
Definitions:
- RBI provide loans to banks up to 90 days
- Bank rate is official lending rate of RBI
- Inflation is Change in value of price of goods in a period of time
