Scope for providing more monetary boost to growth: MPC member Ram Singh

Ram Singh signals potential for multiple rate cuts in FY26-FY27, citing low inflation and scope for accommodative monetary policy to support growth

Ram Singh, director, Delhi School of Economics, and a member of the Reserve Bank of India’s (RBI’s) Monetary Policy Committee says if lower FY27 inflation estimates are reinforced in the RBI’s inflation forecast, that might create the space for more than one additional cut. In an interview with Manojit Saha, Singh said a change in stance to “accommodative” is desirable to suggest an increased likelihood of additional rate cuts in this easing cycle. Edited excerpts:

 

You have voted for the “accommodative” stance. There is a view that a rate cut can happen even if the stance is “neutral”. So there