Rate Cut Season May Get Longer

THE REPORT HIGHLIGHTS a series of supportive factors, including a revival in private consumption, strengthening balance sheets of both banks and corporates, accommodative financial conditions, and a persistent push by the government towards capital expenditure.

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These elements are expected to underpin India's economic momentum well into the next fiscal.

The inflation outlook has improved markedly, driven by multiple favourable developments, including easing global supply chain disruptions, declining international commodity prices, and expectations of a robust agricultural output on back of an above-normal southwest monsoon. Headline inflation eased by 73 basis points, settling at 4.6% in the current fiscal.