RBI hikes repo rate by 0.25%

Mumbai: The Reserve Bank today hiked the repo rate by 0.25 percent. This will make corporate and consumer loans more expensive. The repo rates was increase from 7.50 to 7.75 percent and brought down the funds for banks by slashing the marginal standing facility (MSF) rate by a similar quantum to 8.75 percent. The increase was intended to curb mounting inflationary pressures and manage inflation expectations in a situation of weak growth.

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