Interest rate decision is like chewing iron gram for RBI

The meeting of the Monetary Committee of the Reserve Bank of India (RBI), which is facing challenges due to high inflation and slow economic growth, began on December 4. Which is going to end tomorrow on 6th December.

That means RBI will announce its monetary policy tomorrow. But for the central bank, setting the interest rate is like chewing iron. Since, the current rate of inflation is 6.21 percent, which is four percent more than expected. On the other hand, the economic growth rate also seems to be slowing down. India’s GDP growth rate has fallen to 5.4 percent in the second quarter. Due to this, there is pressure on the government and RBI to improve the economic situation. In such a situation, taking any decision on interest rate is like chewing iron for RBI.