RBI hikes short-term rates by 25 bps

The Reserve Bank of India on Friday hiked its key short-term lending and borrowing rates to banks by 25 basis points to combat rising inflation, a move that could signal hardening of commercial lending rates.The move to hike repo and reverse repo rates to 5 per cent and 3.5 per cent respectively come barely a month before the RBI was to announce monetary policy for the year 2010-11. http://bit.ly/cn5PM9