Upward surge in interest rates to continue

New Delhi: Here is a feeler from the Finance Ministry on what to expect from the forthcoming credit policy.

Sources in the Finance Ministry say that they see a 25 basis points cash reserve ratio hike in the monetary policy, but are not in favour of a hike in the repo rate.

Sources also say that growth in money supply is likely to cool off soon.

However, consumers can expect jittery times ahead with the Finance Ministry expecting the upward surge in interest rates to continue for some time.

Experts are worried at this trend saying that any further hike in interest rates to control inflation will hit corporate profitability.