In its latest credit policy review, the Reserve Bank of India, today hiked the Cash reserve ratio, CRR, by 75 basis points, from 5 percent to 5.75 percent. The CRR hike is to suck out liquidity to the tune of 36,000 crore rupees from the system. The RBI has kept the repo rate unchanged at 4.75 percent. Similarly, the reverse repo rate has been kept unchanged at 3.25 percent. RBI has raised its inflation projection to 8.5 per cent by this fiscal-end. The economy is forecast to grow by 7.5 per cent this fiscal. Markets are trading in red. Bombay Stock exchange benchmark was trading at 16,141; down by over 165 points while nifty was down by over 50 points at 4816 when reports last in.Reply Forward