Room for rate cuts, not fiscal expansion, says RBI governor Shaktikanta Das

He was not willing to comment about the potential real interest rate of India that the central bank should fixate upon as the MPC cannot pursue multiple targets

Reserve Bank of India (RBI) Governor Shaktikanta Das said there was space for rate cuts even as the government had little room for any fiscal expansion and the inflation is well below the mandated level. The Monetary Policy Committee (MPC) is due to announce its policy decision on October 4. Analysts expect 

25-40 basis points cut in the policy.

The governor, however, was not willing to comment about the potential real interest rate of India that the central bank should fixate upon as the MPC cannot pursue multiple targets. 

The governor’s statements, on the sidelines of the Bloomberg India Economic Forum