RBI should not cut its policy interest rate any further, says IMF

Supports govt and Reserve Bank's plans for gradually opening up the economy to foreign investors

The Reserve Bank of India (RBI) should not cut its policy interest rate any further, the International Monetary Fund (IMF) has said. It should, instead, keep the powder dry to fight an unexpected financial market turmoil that may hit after June this year if the US and China don’t reach a long-term trade agreement, it warned.

The IMF, though, is impressed with the way the countries in the region, including India, fought the financial markets uncertainties last year when the currencies witnessed depreciation pressure because of oil price rise, and the US Fed normalisation. That risk, according to Changyong Rhee, director