The decision of the central bank to hike the interest rates further, has brought much speculation from all around. The interest rates have been hardened more than what was expected. This is the reason there are so many raised brows on this development. The authorities are of the view that with this sort of a hike, the growth and development of the nation might be jeopardized.

The rates were upped by 50 basis points and this is much more than what they had bargained for. This has raised the benchmark points by 325 Basis Points, in the past 16 months. This means that the a huge blue-chip company will have to pay 3.25% times more interest that what it paid earlier. As for the companies which are down the ranks, the interest rates are even higher.

"This stiff dose will dampen corporate sentiment and affect investment climate”, says R Shankar Raman, senior VP (finance) and CFO designate, L&T. "Sectors, which are most leveraged like infrastructure, real estate, and finance, will be most impacted”, he added further.

The further development due to this move is going to be that it is going to lay a huge burden on the long term financing goals of the firms.