In a bid to tame rising prices which have pushed the annual inflation rate beyond 8 per cent, the Reserve Bank of India on Wednesday raised the repo rate by 25 basis points to 8 per cent from existing 7.75 per cent. However, the apex bank has kept the reverse repo rate unchanged. Repo rate is the rate at which banks borrow money from the RBI, while reverse repo rate is the rate at which RBI borrows from the commercial banks.
