The second quarter monetary policy review by Reserve Bank of India is scheduled for today is expected to bring further rise in key policy rates.Bankers feel that the repo rate may see a hike from the existing 5.75% to 6% but a change in cash reserve ratio (CRR) is not exepcted.

Repo rate refers to the rate at which commercial banks borrow short term money from RBI.

Ernst & Young analysts say that the monetary tightening techniques will be still pursued by the apex bank and policy rates may see a 25 basis points rise. Experts however also say that the hike will not be off tune from the market and that the market has the capacity to absorb this hike too. They are also of the view that this hike may not bring any majot change in the home and auto loan segment thereby affecting the retail borrower.

A similar school of thought is shared by Robin Roy of Pricewaterhouse Coopers and experts from Edelweiss.

However, according to Abheek Barua, chief economist of HDFC Bank, there may not be any change in the policy rates in this quarter review of the monetary policy. "I don't expect any hike in repo rate till October given the tight liquidity situation," he said.