Mumbai: The Reserve Bank may hike the key policy rate by 25 basis points (bps) each at the October and December policy reviews as headline inflation is expected to rise further and stay elevated, analysts said.
Oil prices re-touching the USD 100 per barrel mark with renewed tensions in West Asia, El Nino worries continuing with the conditions set to intensify, likelihood of the narrowing rate differential between India and the US in light of the Federal Reserve's moves towards starting to hike rates and the strong GDP growth are the key factors that will influence the RBI to hike interest rates, according to analysts.
