<p>In a bid to tame inflation penetrating deep in the economy, the Reserve Bank of India (RBI) on Friday hiked the repo rate by 50 basis points.</p>.<p>This is the fourth time in a row that the RBI has raised interest rate taking it to a cumulative 5.9 per cent to calm rising inflation.</p>.<p>The move will also help arrest the fall of rupee against the US dollar by boosting foreign capital inflows. It will however make all types of loans -- housing, vehicles and other personal loans -- costlier. The consumer price inflation which the central bank tracks for monetary policy decisions has climbed to 7 per cent in August. This one percentage point hight than its upper tolerance limit of 6 per cent.</p>.<p><em><strong>More to follow...</strong></em></p>
<p>In a bid to tame inflation penetrating deep in the economy, the Reserve Bank of India (RBI) on Friday hiked the repo rate by 50 basis points.</p>.<p>This is the fourth time in a row that the RBI has raised interest rate taking it to a cumulative 5.9 per cent to calm rising inflation.</p>.<p>The move will also help arrest the fall of rupee against the US dollar by boosting foreign capital inflows. It will however make all types of loans -- housing, vehicles and other personal loans -- costlier. The consumer price inflation which the central bank tracks for monetary policy decisions has climbed to 7 per cent in August. This one percentage point hight than its upper tolerance limit of 6 per cent.</p>.<p><em><strong>More to follow...</strong></em></p>
