Government has hinted at reducing the interest rates to ease burden on consumers. Finance minister Mr. P Chidambaram said the government was conscious that current interest rates were high and vowed to take measures to spur investment and ease the burden on consumers. Rising interest rates have increased the payout on home loans and have hurt auto and apartment sales.

Talking to reporters in New Delhi Mr. Chidambaram said, there has been pressure on prices, and inflation-especially food inflation-is high. The causes are well known; some are beyond control, such as prices of crude oil and imported commodities, but some others can be addressed by determined action. He said, government will use food grain to moderate prices, where necessary, the government will enhance the import of items in short supply.
Mr. Chidambaram said the government was confident that inflation could be moderated in the medium term. Erratic monsoon rain have raised concerns over growth and prices but Finance Minister said the government will take steps to provide relief to the people living in drought affected districts, protect wage employment and save agricultural production. He said, MNREGA and other schemes will be converged to meet the challenges of drought.