But we simultaneously want low and stable inflation rate. Consumer protection is warranted in the same way as investor protection is warranted. But we also want free-market competition. The rupee depreciates. Exporters are silently happy. Consumers are not. The rupee appreciates. Exporters are angry. Consumers are silent. And so goes the story on interest rate changes. We will have “expectations gaps” all the time.
For the middle class who form the backbone of any economy, we have allowed the commercial banks to offer mortgage financing, auto financing, consumer financing and Islamic banking. There has been an impressive response to these products. Most of the autos are now purchased through bank or lease financing.