Reserve Bank of India (RBI) has furthered its aggressive stance against the rampant inflation and hiked repo rate and reverse repo rate by 25 basis points each to 7.50% and 6.50% respectively, in its mid-quarter policy review, which is in line with broader market expectations. While, the RBI has left cash reserve ratio, which is the amount of funds that banks have to keep with RBI, unchanged at 6%.
Kiran says
Interest rate hikes will kill many small banks dependent on loan business. RBI and Govt should take more steps other than just hiking the rates.
I personally think govt is incapable of controlling the inflation.
thanks,
Kiran R
Bhaveek Patel says
yes you are right Kiran, Govt should look for other initiatives to tackle the inflation, interest rates hike can cause slow down in GDP.