Nomura sees 75 basis point rate cuts in 2023 as GDP slows in India

Slowing growth and easing price pressures may prompt India’s central bank to slash borrowing costs starting in August of this year, said Nomura Holdings Inc. in a note to clients on Friday. 

India’s growth is “likely to disappoint at 4.5% in 2023 due to global spillovers, prompting 75 basis point of rate cuts in second half of 2023,” Nomura economists led by Sonal Varma wrote.

India’s monetary policy makers are expected to wind down hikes after a 25-basis-point move in February, capping the most aggressive tightening cycle since 2011. The central bank has delivered five straight increases since