New Delhi, June 7 -- The recent policy actions by the Reserve Bank of India (RBI) appear to mark the end of the current interest rate cutting cycle, according to a report by Union Bank of India.

The report states that the terminal repo rate is now likely to settle at 5.50 per cent, assuming a real interest rate of around 150 basis points and an inflation forecast of 4 per cent for the financial year 2025-26.

It said, "We believe that this stealth easing concludes the rate cutting cycle for now with terminal rate of 5.50 per cent".

The report noted that the RBI's decision to cut policy rates and ease liquidity conditions can be seen as a form of "stealth easing."

The report added that future policy actions will be data-dependent, in li...