Space to cut rate, but cautious about a pre-set easing path: RBI MPC member

At this point in time, the balance between growth and inflation is clearly tilted towards the need to support growth. RBI's forecast for FY26 growth is 6.5 per cent, Bhattacharya said

With inflation expected to remain moderate amid global uncertainty, there is policy space to cut interest rates, Saugata Bhattacharya, external member of the Reserve Bank of India’s Monetary Policy Committee, said while adding he favours a ‘meeting-by-meeting’ approach to policy easing, based on incoming data. He also said there was no voting by members on the stance in the April policy review meeting, which is not mandated by law, in a telephonic interview to Manojit Saha. Edited excerpts:

 

The MPC has changed the stance in the April policy to accommodative, which means the policy repo rate can either be lowered