<h1>RBI Hikes Repo Rate 13 Times to Combat Inflation; Reduces Cash Reserve Ratio to Ease Liquidity in 2012.</h1> To address inflation and manage inflationary expectations, the Reserve Bank of India (RBI) increased the repo rate 13 times by 375 basis points from March 2010 to October 2011. Due to slowing growth and expected inflation moderation, the RBI paused further repo rate hikes, maintaining the repo rate at 8.5% and the reverse repo rate at 7.5% as of December 2011. To ease liquidity, the RBI reduced the Cash Reserve Ratio for Scheduled Commercial Banks from 6.0% to 5.5% in January 2012, and further to 4.75% in March 2012. This was reported by a government official in the Lok Sabha.