To fight inflation, the Reserve Bank Governor has again raised interest rates. This move will result in banks raising interest rate making living tough for the already suffering common man. Raghuram Rajan, The RBI governor claims the decision to hike the main lending or repo rate from 0.25 per cent to 7.75 per cent will be helpful in fighting inflation.
The inflation is expected to last till the end of this fiscal year (March). Let us wait and see if these efforts can help the already slumbering rupee perform well. However, both the stock market and rupee have in fact positively responded towards the new policies. Let us hope that the new regime will bring in positive changes to the slow paced Indian economy.