Monetary watchdog, Reserve Bank of India is expected to proceed with its idea of rate tightening by 75bps more in 2011, said Deutsche Bank.

The apex bank has so far raised policy rates six times in this fiscal as steps to tame the towering inflation figures.

According to Taimur Baig and Kaushik Das, economists at Deutsche Bank, even if inflation does fall to RBI's target of 6%, it is not going to get stable there seeing the demand supply dynamics.

"The central bank would like to push inflation below 5 per cent in the medium term," they said.

Dipped performance in deposit growth has forced the apex bank to go ahead with rate normalisation.

Deutsche Bank expects inflation to stabilise around 6 per cent levels next year.

The current repo rate stands at 6.25%, while Baig and Das say that it should ideally be at 7%.