Future policy actions dependent on growth-inflation dynamics: Nagesh Kumar

Hopefully, the penal tariffs for Russian oil purchase will be withdrawn, and the ongoing bilateral trade negotiations will succeed in eventually bringing down the US tariffs on Indian exports to more

Nagesh Kumar, member of the Reserve Bank of India’s (RBI’s) Monetary Policy Committee (MPC), says while the benign inflation outlook provides policy space, one has to watch how trade policy uncertainties play out, in an email interview with Manojit Saha. Edited excerpts: 

You have observed in the MPC minutes that the benign inflation outlook provides policy space. How much space do you see for further easing? 

The repo rate has been lowered three times since the February 2025 MPC meeting, bringing the total reduction to 100 basis points (bps), to support economic growth. Transmission of the repo rate cuts to