repo rate |  cash reserve ratio |  slr |  reverse repo rate |  statutory liquidity ratio | crr

Today RBI (Reserve Bank of India) declared 75 bps  increase in CRR (cash reserve ratio) but reverse repo rate and repo rate remained unchanged making the CRR rate to 5.75%, the hike would be in two stages.

RBI projected the GDP growth of 7.5% for the financial year 2009-10 from 60% of last year. The RBI also said that the inflation would be around 8.5% in March.

Increases in CRR could push bond yields up, and weigh on shares of banks as well as sectors such as auto and property on concerns loan demand may slow.

RBI said on Thursday ” With a stronger recovery in India, the risk of food price inflation causing generalized inflation cannot be ignored”.