'Present policy rate & stance well positioned for macroeconomic stability'

Saugata Bhattacharya, external MPC member, spoke on the scope for further rate cuts and how the RBI's foreign exchange market interventions could influence the policy path going forward

After the release of the minutes from December’s Monetary Policy Committee (MPC) meeting -- at which all six members voted unanimously for a 25-basis-point rate cut  -- Saugata Bhattacharya, an external member of the panel, spoke to Subrata Panda about the scope for further easing and the role of the Reserve Bank of India’s (RBI’s) foreign exchange market interventions in shaping the policy outlook. Edited excerpts: 

Is there room for further rate cuts, or has the current easing cycle reached its end? 

Let me begin with the disclaimer that I speak for myself, not the MPC. Given the persisting uncertainty,