Citing strong performance of the agriculture sector, the Reserve Bank of India (RBI) has increased the Gross Domestic Product (GDP) growth rate from 7%-7.5& to 7.5%-8%. This is the second time that the RBI has increased its growth estimate this year. However, the guard against inflation, the RBI increased the so-called repo rate by 25 basis points to 6.5% and reverse repo to 5.5%. The repo rate is the rate at which banks deposit their excess funds with the RBI and reverse repo is the rate at which RBI deposits its funds with banks for short periods of time. The repo rate is used as tool to control cash liquidity. This is the four reverse repo rate increase in the last 15 months and the highest it has been in 3 years.