Nomura: Indian central bank expected to maintain status quo until the end of 2026.

Nomura research analysts wrote in a report that the Reserve Bank of India is expected to remain on hold until the end of 2026. They said that low inflation would provide the RBI with more time to assess the economic impact of the Middle East conflict. However, they wrote that Nomura believes the spillover effects of the Iran conflict on inflation will be greater than on growth, as India has already introduced fiscal policies to protect consumers, while monetary policy continues to support growth, and the benefits of lower U.S. tariffs are expected to gradually materialize. They added that despite a two-week ceasefire, the economic impact may become evident in the coming months as normalizing supply chains takes time, and it is currently unclear how long the ceasefire will last.