Household financial conditions Continued economic expansion depends importantly on consumer spending, so let me spend a few minutes on the financial condition of the household sector. Some analysts have expressed concern about the rapid growth in household debt in recent years and the decline in the household saving rate.
In particular the high rates of interest charged by non banking micro finance companies have attracted attention. Views have been expressed that with the lending to MFIs included in the priority sector, there should be a cap on the interest rates charged to the ultimate borrower.