RBI growth estimate 'too optimistic'

Mumbai: Japanese brokerage Nomura on Friday said Reserve Bank's 6.5 per cent real GDP growth estimate for FY24 is 'too optimistic', and the central bank will pivot to rate cuts from October.

The brokerage said it agrees with the Reserve Bank's projections on price rise and said that the worst of headline inflation is behind us. "However, the revised GDP growth forecast of 6.5 per cent in FY24 appears too optimistic," the brokerage said, adding that it estimates growth to slow down to 5.3 per cent. A slew of agencies and analysts has cut the FY24 growth forecasts in the recent past, with many of them pegging it under 6 per cent as well.