Credit policy review: What to expect?

The Reserve Bank of India will take another step to curb the rising inflationary pressure, as it announces its mid quarter policy review tomorrow. That's the consensus of a CNBC-TV18 poll of bankers and economists. Sooner or later this will mean higher home loan EMIs, but also higher deposit rates, report Vidhi Godiawala and Gopika Gopakumar.

RBI Governor is unlikely to take a pause on his anti inflationary stance. That's the consensus of a CNBC-TV18 poll of bankers and economists, entire 100% expect a hike in the repo rate by 25 basis points to 7.5%. Majority also don't expect the RBI to stop with this policy action. Sixty percent of the respondents expect the RBI to hike rates further by 50 basis points by December 2011 and 40% expect a 75 basis points hike. Hundred percent of the respondents expect the Central Bank to leave cash reserve ratio (CRR) unchanged. If RBI hikes repo rate by 25 bps, 20% of the respondents expect lending rate hike and 10% expect deposit rate hike. Bhanu Baweja, Head - Research & EM Strategy, UBS says,