Archive · 25 Jun 2025
MPC Member Discusses Rate Cuts and Economic Outlook
Ram Singh, a member of India's monetary policy committee, says that businesses aren't investing as much as they should be.
To help boost the economy, the committee cut interest rates.
They decided to do this because inflation is under control.
Singh thinks there's still room to cut rates further, and that India can achieve a good growth rate.
He also suggests that the RBI should help banks if their profits get squeezed by lower interest rates.
MPC member Ram Singh states private capex in India isn't showing strong signs of revival.
The MPC cut the repo rate by 50 bps to 5.50% due to moderate inflation and to boost demand.
Singh believes there is room for a 75 bps cut in this cycle, despite the stance change.
Singh is optimistic about achieving 6.5% growth this year, citing favorable base effects and public investment.
The RBI should consider banks' interests and address pressure on Net Interest Margins (NIMs).
- Who
- Ram Singh of the MPC
- What
- The MPC discussed monetary policy and the outlook for growth and inflation.
- When
- June 6th, following the MPC's decision to cut the repo rate.
- Where
- India
- Why
- To address concerns about private capex and boost economic growth.
Concerns
Optimism
Private Investment
Concerns
Private capex is not showing robust signs of revival.
Optimism
N/A
- MPC Member
- Ram Singh
- Repo Rate Cut
- 50 bps to 5.50%
- Inflation Forecast
- 3.7% (2025-26)
- Growth Forecast
- 6.5% (This Year)
- Concern
- Private Capex
