There is nothing in MPC statement to suggest rate hikes are next: Ram Singh

Ram Singh said lower inflation print than the forecast will strengthen the case for a rate cut

Ram Singh, external member of the Reserve Bank of India’s (RBI’s) Monetary Policy Committee (MPC), told Manojit Saha in a telephonic interview that lower inflation print than forecast will strengthen the case for a rate cut. Edited excerpts:

 

 

In the MPC minutes, you have said that even if we go by the post-pandemic average neutral interest rate, which was 1.65%, there is scope for approximately a 75 bps cut in the current cycle without overheating the economy. When do you see the next rate cut, in August or later, in Q3?

   

It is difficult to say whether