Budget 2026: Key to RBI's Rate Cut Speed Amid Fiscal Credibility Push
Budget
M
Moneycontrol•28-01-2026, 16:08
Budget 2026: Key to RBI's Rate Cut Speed Amid Fiscal Credibility Push
- •Budget 2026 is crucial for macro policy, balancing increased public spending with fiscal credibility.
- •Lower interest rates are vital for domestic demand and private sector credit growth, with RBI having cut rates four times last year.
- •Economists suggest a credible fiscal deficit path and manageable borrowing program in Budget 2026 will empower RBI's monetary policy.
- •India has more room for rate cuts compared to developed economies, but the budget's fiscal stance will dictate the pace.
- •Market experts anticipate the budget will align with monetary policy, focusing on fiscal consolidation and capex-led growth.
Why It Matters: Budget 2026's fiscal discipline and credible deficit path are critical for RBI to accelerate future rate cuts.
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