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Tamping down rampant consumerism does not mean our economy cannot be vibrant and diverse. It only means that we must balance our needs for profit with a vision for an economy that works for all classes, all peoples and our planet as a whole.
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The increase has been in response to the unbridled rise in the inflation rate. In order to reign in the inflationary pressures, the Reserve Bank of India (RBI) has been raising the rates. The repo rate, reverse repo rate and cash reserve ratio (CRR) have been increased by the RBI over the last 2-3 years. These led to a tight credit policy. The higher cost of funds for banks has translated into higher rates on loans, including home loans. They are now ruling at around 12-14 percent.
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