Before hiking any rates Reddy should look at what has happened to america now. 1) 3-4 years ago FED went increasing all interest rates, and now they find that they are in the middle of recession. It seems we will be follwoing same cycle, if reddy dosent stop. 2) Home Borrowers are smart now. Whole economy is in their hands now. They know what would happen if they dont pay. Banks would be bankrupt. One day government will announce package for these borrowers to get the votes like what was given to farmers. 3) All Reddys decisions are based on rediculous wholesale price index. Experts are doubting the formulation of WPI 4) I really dont get how it is impacting by increasing our loan rates. Where our money is going. Banks are increasing money because RBI needs it. Then what RBI is doing with our money. 5) Future is very tough. Last year we have seen lot of chane in envirnment. Heavy rains, Heavy Cold and now heavy summer. As we know Congress has little to increase fodd production. In coming years definitely we will fall short of foods. Which will lead to hign inflation again and rate increase again. 6) Start saving now. We have to change our lifestyle. Buy only what you need and how much u need. Before buying just think once do u need it neccessarily.
