Union budget to purge the economy of black money

A slowdown in fiscal consolidation would also limit the room for monetary easing. Investors are betting that the Reserve Bank of India (RBI) would lower its policy rate by another 25 basis points (bps) as early as next Wednesday.

The RBI has cut interest rates by 175 bps since January 2015 to 6.25%.

“Signs of a populist budget will be positive for markets, but if accompanied by a larger-than-expected borrowing programme will quickly reverse sentiment,” said Rao of DBS Bank.

Watch here,

(Sourced from agencies, feature image courtesy:thehindu.com)