Nomura says RBI may cut rates by another 100 bps to balance growth and inflation

Nomura said that the RBI MPC is expected to take go for a 100 bos additional rate cut by end-2025. The RBI, in the April policy meeting, delivered a dovish 25bp cut, with a shift in its stance to accommodative (from neutral).
The RBI MPC is expected to take go for an additional 100bp in rate cuts by end-2025.
With inflation likely to remain sub-4 per cent and downside risks on growth, Nomura said, the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) is expected to take go for a 100 bos additional rate cut. The central bank, in the April policy meeting, delivered a dovish 25bp cut, with downgrades to its GDP growth and inflation forecasts (0.2pp each), a shift in its stance to accommodative (from neutral) and a commitment to keep liquidity in surplus of around 1 per cent of net demand and time liabilities.

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