Goldman Sachs forecasts year-end rate cut as RBI policy hints at easing credit path: Report

India may be nearing the end of its fiscal tightening phase, with another rate cut likely before the year ends, according to a report by Goldman Sachs. Alongside recent GST simplifications and signs of regulatory easing, these moves are expected to support a steady revival in credit demand, ANI reported quoting the firm. Advertisement

"We expect an additional policy rate cut before year-end, and the recent GST simplification signals that peak fiscal consolidation is behind us. We expect this, along with domestic regulatory easing, to foster a gradual recovery in credit demand," the report added.

Goldman Sachs noted that the Reserve Bank of India's recent policy steps should ease supply-side credit conditions, though the scale of incremental lending will depend on broader economic demand