Inflation impact: RBI may hike repo rate

The short-term lending rate (repo rate) is currently ruling at 8.0 per cent and this may be increased to 8.25 per cent even before the July policy announcement.     

It is quite possible that RBI may increase the repo rate by a quarter per cent before July policy review, HDFC Bank Chief Economist Abheek Barua told PTI.     

The hike could come in the next 10 days, he said, adding, depending on the situation RBI could also increase the Cash Reserve Ratio