Rate cut on the horizon? Vishrut Rana on what could be RBI’s next move

«This is pulling back investment and it is likely to have slightly inflationary impacts in the US in particular, which means slightly more elevated interest rates and this is going to impact Asia-Pacific through tighter monetary policy,» says Vishrut Rana, S&P Global Ratings.

Let me first up ask you about the tariffs, the impact that this is going to have globally. We have been getting a lot of commentary. At one point in time you think that Trump is going to go all out, all aggressive. This morning you got comments where he said April 2nd is when he will put the reciprocal tariffs, but they will be lenient. How should one read into all of these developments and react to that?
Vishrut Rana: Indeed in these highly uncertain times a lot to watch out for. So, the impact of tariffs on the global economy is going to be significant. We think that it is already having an impact in terms of delaying investment plans for firms across the region until there is more clarity in terms of where the trade tensions are going to materialise.

This is pulling back investment and it is likely to have slightly inflationary impacts in the US in particular, which means slightly more elevated interest rates and this is going to impact Asia-Pacific through tighter monetary policy. In contrast, in the region we think that there is more trade sensitive economies will be affected a little bit more, more domestically oriented ones such as India will be affected a little bit less. All in all, certainly interesting times and a lot to digest.


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