Looking for room to cut policy rate, says Raghuram Rajan

The RBI chief said that banks were not in a hurry to cut lending rates because of lack of demand

The Reserve Bank of India (RBI) was maintaining an accommodative monetary policy stances and may cut policy rates further should room for easing emerge, Governor Raghuram Rajan said on Tuesday.

"We're looking for room to ease," Rajan told reporters at a briefing following a policy review.

The RBI left its policy rates unchanged, while cautiously signalling it could cut later this year if monsoon rains, and other factors, dampen upward pressure on food prices.

Rajan also said banks were not in a hurry to cut lending rates because of lack of demand.