Reserve Bank of India (RBI) left its key lending rate unchanged at 7.75 percent on Tuesday, as expected, but raised the proportion of cash banks have to keep with it on deposit in order to mop up inflation-fuelling funds.
The RBI said the cash reserve ratio (CRR) would rise to 7.0 percent from 6.50 percent with effect from Aug. 4, taking it to its highest level since November 2001.This would again see a raise in deposit rates and interest hike we will wait and watch.

Posted by rupya at July 31, 2007 2:28 PM