India's central bank, the Reserve Bank of India (RBI), systematically tightened monetary policy throughout 2010 and in early 2011. Since March 2010, including the June 201125-basis-point rate hike, the RBI increased its key policy repurchase (repo) rates by a cumulative 200 basis points and reverse repo rates by a total of 250 basis points, continuing the process of bringing policy rates to neutral following the end of the global recession. Meanwhile, the RBI has hiked the cash reserve ratio by 100 basis points in 2010. The RBI is intent on mopping up excess liquidity.
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