RBI hikes rates:
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 %.
The RBI is expected to cut interest rates by 25 bps for revival of consumer demand, which saw an erosion due to high cost of borrowing in the last two years.