The Raise of key base points are to be expected from RBI.Faced with rising inflation, the Reserve Bank is likely to increase key policy rates by at least 25 basis points in its mid-term review of the monetary policy to be unveiled on Tuesday.  SBI chairman O.P.Bhatt took a diplomatic atance on the issue sayin “it may or may not raise . if it happens. it will not cross 25 base points” . The raise in the key policy rates are sure to take place as thee macro economic condition is very much complex at the moment.

Overall inflation for the month ended September rose to 8.62 per cent, from 8.5 per cent in the previous month. However, food inflation eased a bit to 13.7 per cent for the week ended October 16, compared to 15.5 in the previous week.
To tighten the screws of monetary flow and bring inflation under control the increase of 25 basis points is sure to happen


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