- a rise of 25bps
- cuts marginal lending facility by 25 bps to 8.75%
- as expected
- increases cash provided to banks through term repo to 0.5% from banks deposits from 0.25%
- process of realigning interest rate corridor to normal monetary policy now complete
- says retail inflation likely to remain around or above 9%
- RBI to launch 10 year interest rate futures contracts by end-december
Rupee trims fall to 61.55 vs USD from 61.63 prior to the announcement
Second rise on the trot from new governor Rajan to curb inflation but it runs the risk of curbing growth
