India's Central Bank Likely Ends Easing Cycle Amid Improved Economic Outlook

India's central bank may have concluded its easing cycle, according to a report by Capital Economics' Asia economist Shivaan Tandon. According to Jin10, Tandon noted that the recent bilateral trade agreements, which significantly reduced tariffs on Indian exports to the U.S., have moderately improved India's economic growth prospects. This development is likely a key reason for the central bank's decision to halt further policy easing. Additionally, the recent rise in precious metal prices has led the central bank to raise its inflation expectations. Tandon believes that given the improved economic outlook and inflation trending towards the 4% medium-term target, the threshold for resuming rate cuts is now considerably high.