mumbai the reserve banks decision to hike key policy rates by 25 basis points will make auto home and other loans more expensive as lenders will have choice but to pass on the additional cost to consumersthe rate hike is expected to be passed on to consumers said icici bank managing director chanda kochharthe rbi steps are on expected lines as inflation still remains stubborn and poses a serious threat to growth union bank of india chairman m v nair told pti herehe also said the bank will pass on the rate increase to customers as credit growth has so far been robust this quarter however he refused to specify how soon the base rate hike would be effectedthe rbi has raised the shortterm lending repo rate by 25 basis points to 750 per cent and the shortterm borrowing reverse repo rate will move up by a similar margin to 65 per centsubsequently the interest rate under the marginal standing facility an additional borrowing window has gone up to 85 per cent from the earlier level of 825 per centit will 25 basis point hike put pressure on the shortterm deposit rates and subsequently on the lending rate said indian overseas bank chairman director m narendrahowever the rate hike by banks may not be immediate as credit offtake has started moderating he saidechoing a similar view indusind bank executive vicepresident moses harding said the rate hike will push the shorter end of the rate curve with higher inversion into the longer endbank of baroda executive director r k bakshi too said the rbi move was expected as inflation has become a serious threat to growthbakshi also hinted at the possibility of a base rate hike by his bank saying though no automatic hike will be effected the bank will act according to the liquidity condition which he termed as comfortable as of nowaccording to punjab sind bank executive director p k anand there will not be any kneejerk reaction from the banks as the rate hike was on expected linesidbi bank executive director r k bansal said the market was expecting the hike and this may not result in banks increasing rates immediatelyin the last oneandahalf months several banks have revised lending and deposit rates following the annual policy announcement last month monetary transmission has been quite strong with 45 scheduled commercial banks raising their base rates by 25100 basis points after the may 3 policycumulatively 47 banks raised their base rates by 150300 basis points during the july 2010may 2011 period the rbi said adding that the higher cost of credit is restraining credit growth however it still remains fairly high suggesting that economic activity is holding coursethe rbi has raised the shortterm lending repo rate by 25 basis points to 750 per cent and the shortterm borrowing reverse repo rate will move up by a similar margin to 65 per cent it kept other rates and ratios unchanged the midquarterly policy initiatives the rbi said are expected