ICRA: RBI rate cut cycle ends; pause expected unless growth slows

• ICRA expects an extended pause on policy rates unless India's economic growth significantly undershoots projections.
• The rating agency believes the current rate cut cycle has concluded, with further easing only likely if growth outcomes materially decline.
• RBI recently cut the repo rate by 25 basis points to 5.25% and revised inflation (2.0%) and GDP growth (7.3%) projections for 2025-26.
• RBI plans to infuse durable liquidity in December 2025 via open market operations and a USD/INR buy-sell swap auction.
• RBI Governor Sanjay Malhotra characterized India's current macroeconomic moment as a "rare goldilocks period" of high growth and low inflation.

Why It Matters: Stable interest rates expected, influencing loans and economic growth.