There is no room for aggressive rate cuts in India in the current situation, Subir Gokarn, a deputy governor of the Reserve Bank of India, told CNBC-TV18 on Friday.
Gokarn said a cut in the interest rates was the next logical step but would depend on other macro-economic factors.
The RBI cut banks' cash reserve ratio, or the amount banks have to maintain with the central bank, by 50 basis points to 5.5% in its policy review on January 24 but kept its key policy rate unchanged.