Impact of India's large rate cut may be limited, says RBI MPC member Saugata Bhattacharya

RBI's monetary policy committee member Saugata Bhattacharya believes the recent 25-bp rate cut's immediate impact is limited, favoring a gradual easing approach. He anticipates shifts benefiting MSMEs and home loan borrowers, influencing credit and economic growth. While confident in achieving the 4% inflation target, he suggests aligning money market rates to accelerate policy transmission, supporting the RBI's growth aspirations.