The Reserve Bank of India (RBI) today raised key interest rates by 25 basis 
points, as expected, tightening policy for the second month in a row as it battles inflation near double digits.
Following are highlights from the policy.
- Lifts repo rate by 25 bps to 5.25 per cent.
- Lifts reverse repo rate by 25 bps to 3.75 per cent
- Rate hikes effective immediately
- Raises cash reserve ratio for banks by 25 bps
- CRR increased to 6.0 per cent effective April 24
- RBI sees baseline whole price index (WPI) at 5.5 per cent at end March 2011
- RBI sees 2010/11 GDP growth at 8 per cent with upside bias
- Says developments on inflation “worrisome”
- Says global commodity prices could add to inflationary pressures
Sees 2010/11 money supply growth at 17 per cent, non-food credit growth of commercial banks at 20 per cent.
