The budget for FY26 aims to drive sustainable economic growth to 7% by addressing key concerns like inflation-impacted consumption demand and tentative private capex. Proposed income tax cuts increase middle-class disposable income, boosting demand in sectors like automobiles and real estate. Fiscal prudence continues, potentially allowing RBI rate cuts, enhancing macroeconomic stability.
RBI seeking to curb yields buys bonds at a premium
The Reserve Bank of India purchased bonds at higher prices than the market on Monday. This move aimed to control bond yields during a period