RBI has yet again increase the policy rates.

* Repo Rate hiked by 50 bps to 8%, effective immediately
* Reverse Repo Rate adjusts 50 bps higher to 7%
* Cash Reserve Ratio kept unchanged at 6%

All bank related interest rates can be seen here – http://banks-india.com/banking-system/bank-related-rates/

MAIN HIGHLIGHTS

* Retains FY12 GDP growth projection around 8%
* Ups Mar-end inflation projection to 7% vs 6% earlier
* Inflation to remain elevated for “few more months”
* Cuts FY12 M3 growth to 15.5% vs 16% earlier
* Cuts FY12 credit growth projection to 18% vs 19%
* Steps to reinforce cumulative impact of past steps on demand
* Steps to maintain policy credibility in controlling inflation
* Policy steps to anchor inflation expectations medium-term
* Stance to change once sustainable downturn seen in inflation
* Policy stance to depend on evolving inflation trajectory
* Controlling inflation “imperative” to sustain growth
* Curbing inflation “imperative” to up potential econ growth