Stance change means possibilities of more rate cuts: MPC's Nagesh Kumar

Kumar says that the impact of reciprocal tariffs imposed by the United States (US) is mixed and there is fiscal space to support public expenditure

Nagesh Kumar, external member of the Reserve Bank of India’s (RBI’s) monetary policy committee, says, in an email interview with Manojit Saha, the impact of reciprocal tariffs imposed by the United States (US) is mixed and there is fiscal space to support public expenditure. Edited excerpts.

 

The monetary policy committee (MPC) has cut the policy repo rate twice, in February and April, to 6 per cent. The stance in the April policy was changed to “accommodative”. Do you think there is more space to cut interest rates?

 

The recent decline in the headline inflation rate has created the policy space