Will RBI also give relief?(RBI)

The Federal Reserve, the central bank of America, took a big decision on Wednesday and announced a cut in interest rates by 50 basis points. Let us tell you that the Federal Reserve (RBI)  has cut interest rates for the first time in 4 years. After a 2-day meeting of the Federal Open Market Committee, today the Federal Reserve took a big decision and reduced the interest rates from 5.25-5.50 percent to 4.75-5 percent. With this big decision, a good rise can be seen in the Indian stock market tomorrow i.e. on Thursday.

What came out about the US economy in the FOMC statement
The Federal Reserve, led by Chairman Jerome Powell, said in the FOMC statement that economic activities in the US are growing at a spectacular pace. The pace of job growth has slowed and the unemployment rate has increased, but it still remains low. It says that inflation has moved towards the committee’s target of 2 percent, but it still remains somewhat high.

The committee’s goal is to bring maximum employment and inflation rate to 2 percent in the long term. The FOMC statement says that keeping in mind the progress on inflation and risk balance, the committee has decided to reduce the target range for the federal fund rate by 0.50 percent to 4.75-5 percent.

Will RBI also give relief?

It is worth noting that the sound of recession had started being heard in America and the pressure on the Federal Reserve to cut interest rates was increasing. It was being estimated that this time the interest rates would be cut by 25 basis points, but the Fed has surprised everyone by cutting the interest rates by 0.5 percent. With this decision, loans in America will become cheaper and EMIs will decrease. This decision of the Fed will also help in increasing the demand in the country, which will accelerate the pace of the US economy.

RBI can also give relief

After this decision of the Federal Reserve, the pressure on the Reserve Bank of India i.e. RBI to cut interest rates will also increase. RBI has not made any change in the repo rate for the last 9 times. Customers taking home loans and car loans have been waiting for a long time for the EMI to decrease. However, inflation still remains a big concern in India. But it is believed that to boost the festive demand, the Reserve Bank of India can give a big gift by cutting the repo rate.