MUMBAI, June 24 Reuters India39;s economy needs an interest rate cut to sustain high growth, two external members of the central bank39;s rate panel said, arguing that food price shocks so far have not added to broader inflationary pressures.

Ashima Goyal and Jayanth Varma, who are members on the Reserve Bank of India39;s monetary policy committee MPC, both voted to cut the benchmark rate at the last policy meeting, dissenting against the four who voted to keep it unchanged at 6.5.

Meanwhile, Shashanka Bhide, a third external MPC member who voted for a status quo, acknowledged that the growth outlook is an important consideration in setting policy.

The views of the three members show increasing concern among policymakers about momentum in Asia39;s thirdlargest economy, even as inflation holds stubbornly above the RBI39;s 4 target.

Monetary policy typically acts with lags of three to five quarters, which means the higher rates would impact growth next year and not the current year, said Varma, who has voted for a rate cut for two straight meetings.

For much of 202324, I have been more worried about 202425 than about 202324. Now that we are in 202425, I am more worried about 202526. The robust catch up growth that we saw in 202324 does little to alleviate these worries, he told Reuters in an interview.

India39;s economy grew 8.2 in the fiscal year ended March 2024. The RBI sees growth slowing to 7.2 in the 2025 fiscal year.

Food price shocks, which have kept…