Nomura: The Reserve Bank of India is unlikely to cut interest rates before 2027.

Nomura research analysts said that the Reserve Bank of India is expected to maintain interest rates unchanged at least until the end of 2027. These analysts wrote in a report that the strengthening of inflation under the new CPI series and more positive growth prospects mean that the RBI is unlikely to cut rates anytime soon. They added that the inflation trajectory remains largely unchanged, and the new CPI series is not expected to change the RBI's view that inflation remains moderate and firmly anchored around its 4% medium-term target. These analysts said that trade agreements with the US and EU, India's "expansionary" budget, and the lagged effect of past rate cuts are all laying the foundation for stronger GDP growth in the 2027 fiscal year.