The Reserve Bank of India (RBI) has hiked its key interest rates, repo and reverse repo rates by 50 bps (basis points). Market has expected the hike by 25 bps and this has given a shock to the market participants. The rate hike has taken the reverse repo to 7% and the repo rate to 8%. Also RBI has kept the cash reserve ratio (CRR) unchanged at 6%. Seeing this the markets has reacted badly, we ... [Continue Reading]