SBI Predicts August Rate Cut to Fuel Diwali Credit Growth

Imagine the RBI sets interest rates like a bank.

A new report suggests they might lower these rates in August to make borrowing money cheaper.

This is to encourage people to spend more during the Diwali festival.

Lowering interest rates before a big festival has previously led to an increase in spending.

The report also points out that since inflation is under control, waiting to cut rates might hurt the economy more than it helps.