Rudra Café, a chain of organic cafés in Delhi, wanted to expand its business in other cities too. Due to rising inflation, the cost of organic…

Rudra Café, a chain of organic cafés in Delhi, wanted to expand its business in other cities too. Due to rising inflation, the cost of organic products, dairy, coffee beans, etc., has risen sharply. At the same time, the Reserve Bank of India has increased interest rates, making bank loans more expensive. The café, therefore, delayed its expansion plans until borrowing becomes cheaper. Identify the element of macro environment affecting Rudra café.