It is what is called monetary policy of RBI. They reduces the interest rate when the GDP growth goes down so that people takes loan to spend as also there is li'l benefit saving money. But when GDP grows fast, normally it results high inflation. Then RBI has no other options but to brake the demand for goods and services by increasing the interest rates thus by encouraging savings. In fact the RBI move was slow as already inflation has gone past beyond all kind of reasonable levels. While middle class may brag about housing loans and savings etc, lower mid class and poorer ones had to fight for a square meals as prices of all essential articles incl food had gone much beyond any desirable extent. Pulses and rice etc had increased by 25-50% in last 1 yr, vegetables risen by 50-100%. That hurts everyone. Hence RBI has no other options but to reduce demand by tightening money supply to the system and one most effective tool central banks all over the world uses is raising the interest rates. So try to adjust to the scenario as far as possible, and for who can't afford simply should sell and move to a cheaper house.
