The Reserve Bank of India (RBI), in its Second Quarter Review of Monetary Policy for the year 2011-12, hiked repo rate by 25 basis points to 8.5 per cent with immediate effect. The reverse repo rate was adjusted to 7.5 per cent with immediate effect. However, the Cash Reserve Ratio (CRR) has been retained at 6 per cent. The Marginal Standing Facility (MSF) rate stands at 9.5 per cent while the Bank Rate has been retained at 6 per cent. Announcing the policy, RBI Governor D Subbarao said in Mumbai today that it is necessary to persevere with an anti inflationary stance and the policy will accommodate growth expectations. The RBI has increased repo and reverse repo 12 times since the past 19 months to contain runaway inflation.RBI has lowered GDP growth projection for the Financial Year 2012 to 7.6 per cent from 8 per cent earlier. The central bank said that inflation expectations remain high but inflation is expected to decline from December onwards. The inflation projection for Financial Year 2012 has been retained at 7 per cent. It has also de-regulated saving bank deposit rates with immediate effect.The next mid-quarter review of Monetary Policy for 2011-12 will be announced on December 16.