Nomura Securities believes that the Reserve Bank of India will keep interest rates unchanged.

Nomura Securities expects the Reserve Bank of India to maintain its policy rate on June 5, citing the central bank's adherence to orthodox inflation targeting framework, limited effectiveness of raising interest rates in stabilizing foreign exchange, and current inflation levels below the policy target. Strategists, including Nathan Sriram and others, stated in a research report that overnight index swap market pricing implies a 30 basis point rate hike at the June 5 meeting. Due to weak liquidity in the short end of the yield curve, OIS market pricing is higher than market expectations, implying a rate hike of more than 25 basis points.