India’s central bank Governor Sanjay Malhotra said that there was room for further interest rate cuts, though the threshold for easing remains high.

While the Reserve Bank of India has lowered the benchmark repurchase rate by 100 basis points since February, “it does not mean a reversal of the easing policy, there still can be a cut,” Malhotra said at a banking summit by Financial Express newspaper in Mumbai on Friday, adding that further reductions will depend on the outlook for inflation and growth.