Nomura on Thursday said it now expects the Reserve Bank of India (RBI) to cut the repo rate by 75 basis points in 2012 compared with 100 basis points previously forecast.
"As such, the RBI did not commit to a rate cut in April and has kept the option not to act open," the investment bank said in a note.
"Its forward guidance is also neutral."
Earlier Thursday, the RBI left its key rates unchanged at its mid-quarter review of the monetary policy, warning of resurgent inflation risks.
Nomura has also revised its projection of global oil prices which it now expects to average close to $120 a barrel, from $110 a barrel earlier.
The bank also forecast the domestic wholesale price index-based inflation rate to be at 7% in 2012-13, with likely upside risk depending on the extent of pass-through impact of global oil prices.
