Challenged by unrelenting inflationary pressures, Reserve Bank on Tuesday announced stringent measures of hiking mandatory cash reserve of the banks and its short-term lending rate to them to suck up an estimated Rs 20,000 crore -- a move that could make loans dearer for housing, car and personal expenses as also to the industry.

Announcement of hiking cash reserve ratio by 50 basis points and the short-term lending (repo) rate by a similar margin comes close on the heels of RBI Governor Y V Reddy discussing with Prime Minister Manmohan Singh and Finance Minister P Chidambaram the prevailing inflation scenario. '
source:timesofIndia

They raises rates to fight inflation but what about ordinary people.

For every thing ordinary people should suffer

Thanks to RBI decision to fight this inflation...

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I don't know how to reply ecsept to say before the US government stressed using Ethanol as a substititue for regular gasoline, i was paying $1.59 for a gallon of milk. now I pay $2.79 per gallon and the price went down from $3.69.
This is what happens when the government meddles to achieve an aim?