| Bankers expect 25 bps reverse repo hike |
| Our Banking Bureau / Mumbai July 25, 2006 |
| An overwhelming majority of bankers and fund managers expect the Reserve Bank of India to hike the short-term reverse repo rate by 25 basis points (bps) to 6 per cent. The last time the central bank hiked its reverse repo rate was on June 8 and it was by 25 bps. The RBI sucks out excess liquidity from the banking system at the reverse repo rate. One basis point is one hundredth of a percentage point. Of the 25 respondents that participated in the snap poll conducted today by Business Standard on the eve of the quarterly review of monetary policy, 15 were in favour of a rate hike while eight participants in the poll said |
