The Reserve Bank of India has announced the Credit Policy. The Repo and Reverse Repo rates are unchanged, but CRR has been hiked by 50 bps to 7.5% in one tranche from November 10, reports CNBC-TV18. The RBI has kept the bank rate unchanged at 6%.

Cash Reserve Ratio or the CRR is the amount of money that every bank has to deposit to the RBI and this affects the banks' operating margins at the macro level. It is now at 7.5%, which means if a bank has Rs 100 crore, they have to keep Rs 7.5 crore with the Reserve Bank of India as reserve. This is necessary to control the liquidity in the market. The BSE Bankex has slipped into the negative zone, down 0.13%.

The RBI has set a GDP target of 8.5% and 5% as the inflation target for FY08, reports CNBc-TV18.