Nomura Projects 5.75% Terminal Repo Rate
Business Standard · business
Japanese brokerage Nomura predicts the Reserve Bank of India will raise rates by 25 basis points in October and December, reaching a terminal repo rate of 5.75%. Rate hike likelihood is expected to decrease from February 2027 due to anticipated weaker consumer spending and a softer inflation outlook. Nomura forecasts CPI inflation to rise to 6.3% in Q4 before moderating. Food inflation, driven by monsoon issues, poses the biggest near-term risk.