The Reserve Bank of India (RBI) gave indications that there might be a hike in its chief rates on Tuesday, in order to check the double-digit inflation. The aim is to bring the inflation down and ensuring a stable economic growth.

The RBI will issue its latest monetary policy on Tuesday wherein it will most likely hike its short-term lending and borrowing rates by a minimum of 0.25 percent each to reduce the inflation whose figure showed a 10.55 percent in June. This figure has been in double digits since March this year because of the high food and fuel costs against the RBI predictions.

This inflation has long gone beyond food items and spread to manufactured products.

The RBI has made clear that since the credit growth in banking system is gradually increasing, especially in the state-owned banks, deposit mobilization must be stepped up in order to meet credit demand.

The RBI also said that a gradual and a fast increment in housing prices in the recent quarters is a concerning matter as it might lead to building demand pressures, and pressure on the general price level and financial stability.