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: Another big shock is waiting for common people. RBI to may take big decision in upcoming time. State-owned oil companies have increased the prices of petrol and diesel. At the same time, the Reserve Bank of India (RBI) might also impose a significant challenge for both everyday citizens and businesses.

RBI is ready to give shock?

Nitin Kamath, the CEO of Zerodha, a prominent brokerage firm, has cautioned that India could encounter a tough period of inflation in the years ahead. Kamath suggests that if the current circumstances do not improve, the RBI may raise interest rates, making loans such as home and car loans more costly.

In a message shared on the social media platform X, Nitin Kamath pointed out that India is currently grappling with a dual crisis. The first issue is the risk of a weak monsoon caused by El Niño, and the second is the soaring prices of crude oil due to ongoing conflicts in West Asia. When these two factors come together, inflation in the nation could escalate uncontrollably. It’s important to mention that over the past year, the RBI has taken a careful approach by keeping interest rates steady to balance growth and inflation. However, if prices continue to climb, including those of petrol, diesel, food, and beverages, the central bank will have no option but to increase rates.

In his post, Nitin Kamath mentioned that the India Meteorological Department (IMD) has predicted 6% less rainfall than usual this year. Although this number might appear minor at first, around 70% of India’s annual rainfall occurs during the monsoon season, and about 60% of the nation’s farmers still depend entirely on rain for irrigation. Kamath noted that nearly 60% of El Niño years since 1951 have seen drought or low rainfall in India. A weak monsoon will have a direct effect on the production of essential crops like rice, pulses, sugar, and vegetables. Once crops are affected, food inflation could surge dramatically in the country.

Crude oil crisis

The global energy market is also putting pressure on India. Kamath described the situation in the Strait of Hormuz as a “major disorderly crisis.” This has led to a surge in crude oil prices. The average basket price of Indian crude oil was $114 per barrel in April and around $106 per barrel in May, a very worrying level for India’s economy. Higher crude oil prices directly increase not only petrol and diesel prices but also transportation costs, fertilizer expenses, and the country’s current account deficit (CAD).

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Working in the media for last 7 years. The journey started in the year 2018. For the past few years, my working experience has been in Bengali media. Currently working at Timesbull.com. Here I write like...

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