RBI Rate Cuts On The Horizon? Nomura’s Sonal Varma Predicts Big Moves

Sonal Verma discusses the potential for RBI rate cuts in the coming year. She projects growth below 6% for FY26, lower than RBI's 6.5% forecast. Verma cites soft global demand, well-aligned inflation with RBI's 4% target, and a weakening dollar as factors supporting rate cuts. She suggests the repo rate could be reduced to 5% by year-end, emphasizing the need for counter-cyclical policies to support domestic demand.