The Reserve Bank of India still has room for a further 50 basis points (bps) cut in policy rates in 2026, following bumper rate cuts of 125 bps in 2025, according to a report by IIFL Capital.
Global monetary policy is expected to remain largely accommodative in 2026, even though most of the easing in the current cycle has already taken place during 2024 and 2025, according to a report by MUFG Bank (Mitsubishi UFJ Financial Group).
The Goods and Services Tax (GST) data of December 2025 reflects resilience in India's tax collections despite steep rate cuts earlier in the year, with imports, steady domestic demand and higher refunds shaping the overall revenue picture, stated experts reacting positively to the GST num
However, in terms of Emerging Market (EM) Equities, Invesco report said the EM equities have the most attractive valuations relative to other regions, albeit with wide variation within EM. "We anticipate Chinese stocks to continue to outperform while India may struggle."
Analysts said the rally reflects a confluence of macroeconomic and geopolitical factors that continue to reshape investor behaviour. They believed that a weaker US dollar as well as escalating geo-political tensions are being reflected in the continuous surge in the prices.
The Reserve Bank of India (RBI) may reduce the repo rate by 25 basis points (bps) in its February monetary policy meeting, taking the benchmark rate down to 5 per cent, according to a report by Union Bank of India.
The Reserve Bank of India's Monetary Policy Committee (MPC) is likely to remain on an extended policy pause after its recent rate cut, with any further monetary easing contingent on inflation consistently undershooting its current trajectory, ICICI Bank's Economic Research Group has asserted
Considering the benign inflation outlook - headline as well as core - real interest rates need to be lower. Therefore, I vote for a 25-bps rate cut. This will also stimulate demand and be growth-supportive," the statement from the RBI Governor said in the minutes.
Despite equity market underperformance triggered by geopolitical tensions, global investment firm Invesco has expressed cautious optimism on India's economic outlook for 2026, citing progress on domestic reforms, scope for improved US-India relations and monetary easing by the Reserve Bank o
India's macroeconomic outlook remains constructive even as global uncertainties persist, with policy rates seen at their lowest feasible point in the current cycle, bond yields likely to ease further, and external balances remaining stable, according to the India Economic Outlook 2026 report
As the base effect on food fades, headline Consumer Price Index or retail inflation is likely to edge up slightly to average at 2.5 per cent this financial year 2025-26, Crisil has asserted.