MUMBAI (Reuters) - The Reserve Bank of India (RBI) late on Monday announced measures to manage volatility in the rupee, including lifting two interest rates by 200 basis points each and a planned sale of 120 billion rupees of government bonds on July 18.
The RBI said in a statement that it had adjusted the Marginal Standing Facility (MSF) and the Bank Rate to 10.25 percent each. Both rates were previously 8.25 percent.
The MSF is the rate at which banks can borrow from the central bank at an elevated rate against government securities during times of tight cash. The bank rate is linked to the MSF.
India's main policy interest rate, the repo rate, is unchanged at 7.25 percent.
The rupee last week hit a record low of 61.21 to the dollar.
(Reporting by Tony Munroe and Suvashree Dey Choudhury)
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