RBI focuses on inflation

Repo rate denotes the discount at which the central bank repurchases government securities from commercial banks to inject liquidity in the system and reverse repo rate signifies the rate at which it absorbs liquidity from banks.While the bank rate is currently pegged at 6 percent, the reverse repo rate and the repo rate have been notified at 6 percent and 7.75 percent, respectively. The cash reserve ratio stands at 7.5 percent.RBI Governor Y Venugopal Reddy conducted the quarterly review of the monetary and credit policy, which was keenly waited by not only the Indian industry but also equities traders.Reddy said the thrust of Tuesday's review was to reinforce the emphasis on price stability and well-anchored inflation expectations while ensuring interest rates environment conducive to maintaining the growth momentum.