The Reserve Bank of India today raised its key interest rates by a steep 0.5 per cent, to arrest rising prices. In its quarterly review of monetary policy, today, the Reserve Bank hiked the repo rate, or the rate at which it lends to banks, to 8 per cent, and the reverse repo rate, or the rate at which it borrows from banks, to 7 per cent, with immediate effect. All loans, including auto, home, and personal, and other corporate borrowings are expected to cost more, following the RBI's decision. This is the 11th time since March 2010 that the RBI has raised interest rates to check inflation. However, the cash reserve ratio was kept unchanged, at 6 per cent. RBI Governor D. Subbarao said, while unveiling the monetary policy that notwithstanding signs of moderation, inflationary pressures are clearly very strong. He said inflation continues to be the dominant macro-economic concern. The central bank also revised its fiscal-end inflation projection to 7 per cent, from the earlier 6 per cent. But it retained the growth projection for the current fiscal at 8 per cent, saying there is no evidence of a broad-based slowdown.