Reserve Bank of India Governor Sanjay Malhotra described 2025 as a "rare Goldilocks period" for the Indian economy, marked by growth exceeding 8% and inflation under 1%. The RBI cut key rates four times, totaling 1.25%, to support growth. Despite concerns about forecasting accuracy, the central bank maintained liquidity and offered regulatory relaxations, impacting banks' net interest margins. Governor Malhotra anticipates growth will soften and inflation will rise towards the 4% target.