The Reserve Bank of India (RBI) hiked the repo rate to 25 basis points to 6.25% from the earlier 6% in the June bi-monthly policy meet on Wednesday.
The reverese repo rate has been raised to 6% from the earlier 5.75%, raising the key rate by 25 basis points.
The RBI’s six-member committee voted to hike the central bank’s repo rate, or the rate at it which lends to banks, by 25 basis points, to 6.25% from 6% earlier in its second bimonthly monetary policy review of FY18.
The MPC had last slashed the benchmark lending rate by 0.25 percentage points to six per cent in August 2017.