RBI's Ram Singh: Rate Cut May Pressure Rupee, But Imported Inflation Contained

• RBI MPC member Ram Singh suggests a rate cut could pressure the Indian Rupee (INR).
• He believes imported inflation will remain contained due to low global oil and commodity prices.
• India's macroeconomic fundamentals are robust, suggesting current exchange rate pressures are self-limiting.
• The Rupee recently faced pressure, hitting record lows, partly due to limited RBI intervention.
• However, heavy RBI intervention led to a strong comeback, with the Rupee appreciating significantly on Dec 19.

Why It Matters: Rate cut may weaken Rupee, but low commodity prices will curb imported inflation, says RBI's Ram Singh.