You are correct..this is old ecomnomic thinking that increase in interest rate will bring down inflation..but we need to thing on upto what extent it will impact..defn this increase in rates will impact real estate prices and auto industry..but as far other goods there is not going to be much of improvement. especially agri goods price will come down only with increase in prod..which because of the sez land grabing n india is going down..govt has not done enuf to improv agri prod..only if our agri growth reaches 2 figure (> 10 %) we will have some respite in prices of agri commodities.
