I was reading ET today morning and its clear that interest rates are raising (both lending and borrowing rates)

THE battle for retail deposits is being fought with full force, with Kotak Mahindra Bank offering 8% for term deposits of 290 days. Recently, ICICI Bank had announced 8% for 390-day term deposits. The offer comes at a time when banks are up against resource crunch, thanks to a huge credit expansion in the economy.

Compare this to PSU banks living in another world ..

The SBI offered 6.25% for 1-3 years. Bank of India and Union Bank are offering 6.5% and Indian Overseas Bank 7% for deposits up to three years.

I have heard home loans have increased to 9.5% pa. Its getting interesting…