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A day after saying that there is more fire power with the Reserve Bank of India to boost sagging growth, Governor Shaktikanta Das, on Friday, said future rate cuts will depend on incoming data, but warned that India cannot have low interest rates as in advanced economies.
“How much more we can go down (with the rate cuts)? We cannot go down to the levels of advanced economies. But how much we can go down will depend on the incoming data and other developments,” said Das.
He said most of the advanced economies have near zero inflation and, therefore, their rates are also low.
“But our inflation target is 4 per cent, and, therefore, that should be the guiding force.”
Das said as the full-service central bank, the RBI doesn’t have a specific view on what should be the real interest rates.
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