RBI increases Repo/Reverse Repo Rates by 25 bps

Mumbai, June 8 (UNI) The Reserve Bank of India (RBI) today raised interest rates on reverse repo by 25 basis points (bps) under the Liquidity Adjustment Facility (LAF) to 5.75 per cent from 5.50 per cent, citing a review of economic and overall monetary conditions.

The apex bank has also increased its repurchase auction rate by 25 basis points to 6.75 percent, to maintain a 100 basis point spread.

Observers in the banking industry maintain that the current hike was a rare move between scheduled monetary reviews, as the next review of rates by the RBI had not been expected until July 25.

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