Tax exemptions, RBI minutes

Ahead of the full budget for FY19/20 on 5^th July, the early leaks have focused on potential changes to income taxes. By themselves, these won’t have a material impact on the fiscal position. But they would be indicative of a more accommodative fiscal stance, and we expect the details of the budget to reveal further loosening measures. And if the minutes of the RBI’s early June meeting are any guide, looser fiscal policy won’t prevent further monetary easing over the coming months