The Reserve Bank of India (RBI) is expected to raise its key policy rate by a further 25 basis points next week after inflation quickened in June and may hike once more by the end of the year, before pausing its long tightening campaign, a new Reuters poll shows.
Expectations that the repo rate will peak at 8% by end-2011 are largely unchanged from a previous forecast in mid-June, and hinge largely on whether persistently strong price pressures in Asia's third-largest economy will soon begin to abate.
India's wholesale price inflation quickened in June to an annual 9.44% from 9.06 percent in May, driven by higher prices for manufactured goods and fuel, even as the economy showed signs of cooling.
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