The Reserve Bank of India (RBI) today hiked the Credit Reserve Ratio (CRR) by 25 basis points to 8.25 per cent with effect from May 24 and left key interest rates unchanged in its annual the monetary and credit policy for the year 2008-09.
The hike in the CRR, the mandatory amount that banks have to keep with the RBI, followed a two-stage rise earlier in April to 8.0 percent and the second hike has yet to take effect on May 10.The RBI left its key lending rate unchanged at 7.75 percent and left the reverse repo rate, unchanged at 6.0 percent. The bank rate, which is used to price medium-term and long-term loans, remained at 6.0 percent.
