The Reserve Bank between October 2010 and now increased the short-term lending rate by three per cent in 12 instalments to contain prices (editorial, Sept. 17). But the rate of inflation continues to rise and may reach double-digits any time. This has made borrowing costlier for corporates and individuals. Reports say the government is contemplating easing restrictions on foreign commercial borrowing but individuals will have to either stop or postpone indefinitely owning his/her dream home or car.
N. Ramamurthy , Chennai .
The consequence of the RBI's decision to hike the repo rate by 25 basis points will be in terms of low growth rates. There should be policies to root out structural imbalances. At a time of global uncertainty, India should focus on the manufacturing sector.
Arvind Kumar , Jaipur .
