RBI has hiked short term lending or repo rate by 0.25 percentage points. It will be now 5.75 per cent. The short-term borrowing or reverse repo rate has been hiked by 0.50 percentage point to 4.50 per cent. The cash reserve ratio or CRR and bank rate have been kept unchanged at 6 per cent. The RBI also raised economic growth forecast to 8.5 per cent for 2010-11 fiscal from earlier 8 per cent. Inflation projection has been raised to 6 per cent for fiscal end from 5.5 per cent earlier. RBI has kept cash reserve ratio or CRR and bank rate unchanged at 6 per cent. The following are the highlights of the RBI's first quarter review of the Monetary Policy 2010-11 released today:* Repo rate raised by 25 basis points to 5.75 per cent* Reverse repo rate hiked by 50 basis points to 4.50 percent* CRR and bank rate kept unchanged at 6 per cent* Hike in policy rates with immediate effect* FY'11 growth seen at 8.5 per cent, up from projection of8 per cent earlier* Inflation pegged at 6 per cent by FY'11 end, up from 5.5per cent earlier* Demand-driven inflationary expectations at elevated level* Expect to maintain financial conditions conducive togrowth* To start new mechanism of mid-quarter review* First mid-quarter review on September 16, 2010* Monsoon better than last year, good for agri production* Capital inflows expected to be high on strong economicgrowth* Second quarterly policy review on November 2, 2010