Here's what determines the construct of interest rate

We have been discussing so many dynamics of the financial markets but the one thing that regular investors feel more acutely is changes in interest rates. When our home loan EMIs go up or down, when our auto loans go up and down so what exactly determines that construct, why has the Reserve Bank of India as well just like other central banks become so much more active with its role at least in its perception and who do they impact both what is happening in the economy that you and I live in as also with our rate decisions. To discuss all of that and to simplify some of it as well Sonal Varma, Executive Director & India economist, Nomura.