RBI narrows rate corridor with repo, reverse repo hikes
The Reserve Bank of India (RBI) on Thursday used its first mid-quarter policy review to levy hikes to the repurchase and reverse repurchase rates, citing "unacceptably high" levels of inflation.
The central bank raised its repurchase rate by 25 basis points, taking it to 6%, and its reverse repurchase rate by 50 basis points, taking it to 5%.
Provisional figures, published Tuesday by the government, showed wholesale price inflation had come down to 8.51% in August, from 9.78% in July. While
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