Banking and monetary regulator, Reserve Bank of India is likely to announce another set of rise in policy rates in the upcoming review of monetary policy this Thursday. The step would be a move towards further controlling inflation figures in the country.

Inflation of India as on February 2011 has been at 8.31%. Economists feel that repo as well as reverse repo rates could see another 25 bps hike.

"The RBI may raise key policy rates by 25 basis points to arrest food inflation spreading to manufacturing sector," Crisil Chief Economist DK Joshi said.

According to ICRA Economist Aditi Nayar, "We continue to expect that the RBI may increase repo and reverse repo rates by 25 basis points in the upcoming mid-quarter policy review."

"The RBI will release its next Mid-Quarter Review of Monetary Policy 2010-11 at 12 noon on March 17, 2011," said a central bank release.

So far there have been 7 hikes in repo and reverse repo rates this fiscal. Repo rates have seen 175 bps rise while there has been 225 bps rise in reverse repo rates.

Repo rates refer to the rates at which banks borrow funds from RBI. Reverse repo rate on the other hand refers to the rate at which banks park their excess funds with RBI.