The Reserve Bank of India today raised the repo rate, or the rate at which its lends to banks, and the reverse repo rate, the rate at which it borrows from banks, by 25 basis points, each, to combat inflation. The repo rate has been raised to 7.5 per cent, and the reverse repo rate to 6.5 per cent. This is the tenth time since March, last year, that the RBI has hiked key interest rates to control inflation. With the rise in the repo rate, the interest rate for the additional lending facility of the RBI under the marginal standing facility has gone up by 25 basis points, to 8.5 per cent. But the apex bank kept other rates and ratios unchanged in its mid-quarter policy review. The RBI said that its monetary policy stance remains firmly anti-inflationary, recognising that some short-run deceleration in growth may be unavoidable in bringing inflation under control. Pointing out that inflation is at an uncomfortable level, the RBI said the present wholesale price figures understate the pressure because domestic fuel prices have yet to reflect global crude oil prices.Commenting on the RBI's rate hike, the Finance Ministry said, in a statement, that it was on expected lines, and that the RBI has sought to maintain an interest rate environment that moderates inflation and checks inflationary expectations. The Finance Ministry statement added that it is necessary to have price stability for sustaining growth in the medium term.Confederation of Indian Industry (CII) today said the Reserve Bank of India's decision to increase repo and reverse repo rates by 25 basis points each is on expected lines. CII Director General Chandrajit Banerjee said in a statement that his chamber hoped that there would not be further hikes in key rates amidst growing signs of slowdown in economic and investment activities.