RBI raises repo rate; trims rupee support measures

Sep 20, 2013

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Mumbai: The Reserve Bank of India unexpectedly raised its policy interest rate by 25 basis points on Friday but rolled-back some of the measures it had implemented to support the battered rupee currency.
In his first monetary policy review since taking office on Sept 4, RBI Gov. Raghuram Rajan increased the repo rate by 25 basis points to 7.50 percent. Economists had widely expected the RBI to leave the repo rate unchanged.
However, he reduced the marginal standing facility (MSF) rate by 75 basis points to 9.50 percent. The RBI had lifted the MSF to 10.25 percent in mid-July to stabilise a declining rupee.

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