The global crisis has finally begun to impact the Indian economy as its pace of growth has slowed down gradually. However, the surging problem of the inflation in the country indicates that the RBI would be required to raise the rates once gain.

It is believed that on the coming Friday, the RBI would be revising the interest rates for the 12th time since inflation. Today, the wholesale price index has depicted a 9.78 % hike in the inflation, which is a matter of worry for the country.

Although it is predicted that the RBI would be increasing the interest rates, market analysts are saying opposite to it. According to them, the global financial crunch will work as a barrier for the RBI to impose a hike in the interest rate. Last time, when the interest rates were increased, their impact over the economy was not as favorable.

Moreover, increase in the interest rate would further slow down the industrial output, car sales and the non oil imports. Earlier, hike in the interest rates were imposed with the hope of battling inflation but later on the efforts of the RBI didn't prove fruitful as the inflation kept on moving upward continuously.