The Economic Times News

Japan rate hikes, Fed cuts and EM flows: Why India could be a key market play in 2026

Japans surprise rate hikes, an expected 50 bps Fed cut, and a weakening US job market could reshape global capital flows. Economist Peter Cardillo says emerging markets may benefit, with India standing out as inflows return amid a carry-trade unwind, AI-driven layoffs, sticky inflation pressures, and slowing US growth into 2026, according to recent commentary on monetary policy shifts globally.