Trade Deal Delay Could Lead to Cheaper EMIs: Goldman Sachs Hints at RBI Rate Cut

• Goldman Sachs suggests RBI may cut interest rates if the India-US trade deal is delayed, impacting economic growth.
• A prolonged delay in the trade agreement until Q1 FY27 could prompt RBI to liberalize monetary policy.
• Consumption recovery is underway, particularly in rural and lower-income urban areas, supported by good harvests and government schemes.
• Domestic demand is currently managing global uncertainties, but trade deal delays could hit exports and investment.
• Goldman Sachs economist Shantanu Sengupta notes risks to growth if the trade deal is postponed beyond Q1 FY27.

Why It Matters: A delayed India-US trade deal might compel RBI to cut interest rates, potentially leading to cheaper EMIs.