RBI hikes repo rate by 25 bps to 8.50%

RBI has raised the benchmark interest rates by quarter of a percent point on Tuesday, while keeping cash reserve ratio (CRR) rate unchanged, reverse repo now stands at 7.5%.

The RBI has revised its fiscal year 2012 GDP growth projection downwards to 7.6%. However, it has kept its March-end inflation projection unchanged at 7%.