Give cheap loan happiness or stop fear of inflation? Everyone’s eyes are on a decision:

Today the whole country is looking at the country’s largest bank, Reserve Bank of India (RBI) with great hope and a little nervousness. The Monetary Policy Committee (MPC) of RBI is going to have an important meeting, and this time this meeting is no less than a ‘fire test’.

This is because the RBI stands at an intersection where one way moves the development of the country, while the other way challenges the closure of inflation back into the bottle.

What is RBI’s biggest ‘headache’?

They consider it in easy language. This story has two main characters:

1. Industry and Markets: These people want RBI to reduce their interest rates. If this happens, the debt from banks will become cheaper. This simply means that the EMI of your home loan, car loan and personal loan can be reduced. Industrialists will get cheaper loans for their factory and business, which will invest more and create jobs. That is, the growth of the country will gain momentum.
2. Inflation: It is the biggest enemy of RBI. For some time, everything from food and drink has become expensive. The first task of RBI is to keep inflation under control. If the RBI reduces the interest rates, then people will get more money in their hands, they will spend more, and this will increase the risk of raising the head again.

So what are the expectations of the market and the industry?

The market and industry are sitting in the eyelids that RBI will tell any good news this time and will definitely cut interest rates by at least 0.25%. They feel that now the worst phase of inflation has passed and this is the perfect time to give a ‘booster dose’ to the country’s economic growth.

It is like ‘walking on rope’ for RBI

Now you can understand how big a challenge is before RBI Governor Shaktikanta Das and his team.

• If they do not reduce interest rates, the market and the government may be angry that they are not supporting growth.
• And if they reduce the interest rates, then they may be accused of softening about inflation.

It is like walking on a rope for RBI, where there is a gap of inflation on one side and slow growth rate on the other side. It remains to be seen how RBI makes a balance between these two. On this one decision, not only the move of the stock market, but both of us will depend and the direction of the country will depend.