"Ít is an effort to contain depreciation of the rupee and maintaining price stability,'' said KSR Anjaneyalu, Managing Director and Chief Executive of Lakshmi Vilas Bank, justifying the 25 basis points hike in repo rate.
Terming RBI's monetary policy review for the quarter as a 'balanced approach', he said: "agriculture production is expected to be robust this year, yet there was no alternative for RBI except to raise the repo rate to contain inflation caused by the CPI Index particularly because of services and industrial sectors impact on inflation.''