08:05 AM EST, 02/10/2025 (MT Newswires) -- Under the new Reserve Bank of India governor, the Monetary Policy Committee voted unanimously for a 25bps cut and a neutral stance last week, as expected, said Nomura.

The forward guidance didn't pre-commit to a next move and suggests data-dependence. The bank sees this as "prudent," given external uncertainties.

Underlying signals, though, suggest the scope to ease further, stated Nomura. This includes the downplaying of an expected growth recovery/higher core inflation, the view of softer food prices, a commitment to be proactive on liquidity, a delay in regulatory tightening and the view on currency spillovers.

Nomura continues to expect a terminal rate of 5.50% by end-2025, or 75bps of additional easing, with the next cut in April. The bank's view of a deeper cutting cycle -- 100bps including last week's cut -- which is more than both consensus (50bp-75bps) and what has been signaled by the RBI, is premised on Nomura's view that India's growth is still cycling down and will surprise to the downside.