Low inflation provides space for easing, but trade uncertainties & transmission need to be seen: MPC member Nagesh Kumar

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MPC members acknowledged the possibility of rate cuts but paused due to transmission lags, trade uncertainties, and food inflation concerns. Despite a reduced inflation forecast, downside risks remain, especially with CPI basket revisions. US tariffs pose a threat to job creation and MSMEs, necessitating market diversification and government support for exporters.