The Reserve Bank of India hiked its key rate by a quarter point in October in contrast to the recommendation of external members, minutes of the Technical Advisory Committee showed Thursday. Only one external member suggested an increase in the repo rate by 25 basis points, while other five members were of the view that the repo rate should not be changed. The advisory committee consists of twelve members. One external member called for an increase of 25 basis points in the Statutory Liquidity Ratio. The member further recommended that the provisioning for standard assets could be relooked to promote investment activity. Another member recommended a nominal exchange rate appreciation to reduce the cost pressure on the economy. The RBI has hiked rates 13 times since March 2010. Now the repo rate stands at 8.50 percent.
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