Repo rate will serve as the single policy rate
In a major reform measure, the Reserve Bank of India on Tuesday announced measures to move to a regime, where the repo rate will serve as the single policy rate.
In an aggressive monetary policy announcement, the RBI hiked the repo rate the rate at which the RBI lends money to banks, by 0.25 % from 5.75% to 6 % and the reverse repo rate, the rate at which RBI borrows money from bank by 0.50 % from 4.50% to 5 %.