<p>The RBI may opt for a rate hike of at least 25 basis points, with inflation set to stay high for a longer period than anticipated due to a rise in global commodities prices and domestic supply side pressures that have recently pushed up food prices. <br /><br />The move has been largely expected with food inflation remaining persistently high. "While downside risks to growth have receded, upside risks to inflation have increased," said RBI in a document titled, "the Macroeconomic and Monetary Developments in the Third Quarter of 2010-11”.<br /><br />"Since a lower inflation regime is essential for sustainable high growth, containing inflation becomes the dominant policy objective in the current environment," the RBI said .</p>
<p>The RBI may opt for a rate hike of at least 25 basis points, with inflation set to stay high for a longer period than anticipated due to a rise in global commodities prices and domestic supply side pressures that have recently pushed up food prices. <br /><br />The move has been largely expected with food inflation remaining persistently high. "While downside risks to growth have receded, upside risks to inflation have increased," said RBI in a document titled, "the Macroeconomic and Monetary Developments in the Third Quarter of 2010-11”.<br /><br />"Since a lower inflation regime is essential for sustainable high growth, containing inflation becomes the dominant policy objective in the current environment," the RBI said .</p>