Oil crisis to have limited impact on inflation, fiscal numbers: Shaktikanta Das

A fortnight before the monetary policy committee (MPC) review, Reserve Bank of India (RBI) Governor Shaktikanta Das said there was space for rate cuts, particularly as the government has almost ran out of space for any fiscal expansion.

However, the governor was not willing to comment about the potential real interest rate of India that the central bank should fixate upon as the MPC cannot pursue multiple targets.

The governor’s statements, on the sidelines of the Bloomberg India Economic Forum on Thursday evening, are important as the government tries to shore up the economy through various measures, but falls short of the market expectations, which clamour for more substantial packages.