Mumbai, June 6: The Reserve Bank of India (RBI) hiked Repo Rate by 25 basis points to 6.25 per cent on Wednesday. The Reverse Repo rate has been hiked to 6 per cent. The repo rate has been hiked after a gap of over four years. Repo (or repurchase) rate is the rate of interest which the RBI charges to lend short term loans to commercial banks. The reverse repo rate is the rate at which the RBI borrows from commercial banks.

RBI has projected inflation for 2018-19 at 4.8- 4.9 per cent in the first half and 4.7 per cent in the second half of the year. The projection for GDP is 7.5-7.6 per cent in first half and 7.3-7.4 in the second half.

A Reuters poll had predicted that the RBI is expected to hold key rates in its monetary policy meet. However, the same has been proven wrong as RBI raised rates today. The RBI had last raised repo rate in January 2014 to 8 per cent.

(The above story first appeared on LatestLY on Jun 06, 2018 02:49 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).