RBI likely to raise rates again by 25 bps to check inflation
With inflation remaining stubbornly high at 9.78 per cent for August, bankers and economists expect the central bank to continue with hawkish monetary policy and hike rates again at the mid-quarterly credit policy review on Friday.
RBI has raised interest rates 11 times since March 2010 to check the rate of price rise, but inflation has remained much above the central bank's comfort level of 5-6 per cent.
"The current rate of inflation would put pressure on RBI to further tighten monetary policy. There could be a hike of 25 basis points in key rates by RBI," Oriental Bank of Commerce Executive Director S C Sinha said.