RBI raises lending rates
The central banker to the Indian Government, Reserve Bank of India , known as RBI has raised the lending rate to banks from 8.25% to 8.75%. Also it has raised the Cash reserve ratio, which is the ratio of deposits kept in cash by banks with the RBI, by 50 basis points. These measures are meant to put the brakes on the demand for various products, which is expected to lead to reduction in the economic growth rate.