Slight pain will be felt when subsidy rationalization kicks in coupled with several rounds of adjustment in BLR.

In general, interest rate will slowly inch up over the next 12 - 18 months unless commercial banks are so generous that they are willing to absorb any increase in OPR without passing the burden to their customer base. Even if there is no hike in Sept meeting, interest rate will continue to increase over the next 12 months or so.