RBI likely to lift rates by 25 bps next week

A majority of economists expect the Reserve Bank of India (RBI) to raise key interest rates by 25 basis points in its quarterly review on July 27 and tighten policy further in coming quarters, a new Reuters poll showed.

While headline inflation has been in double-digits for five months running and economic growth is expected to reach 8.5% this year, tight liquidity and continued uncertainty about global recovery are expected to prevent the Reserve Bank of India (RBI) from tightening policy more aggressively.

The RBI has raised rates three times this year by 25 basis points each, most recently in an unexpected move on July 2.

Source: moneycontrol

he Reserve Bank of India, battling surging price pressures, is widely expected to lift key interest rates by 25 basis points when announcing its annual monetary policy on May 3, even as some economists call for a 50 basis point rise.
regards
hionstocks

Increasing interest will bad effect on India economy due to this factor inflation and unemployment ratio is high within 2 weeks.