Reserve Bank of India Governor Sanjay Malhotra expects interest rates to remain low for a “long period of time” as inflation stays benign.

In an interview with the Financial Times, Malhotra said rate cuts made during his tenure had helped engineer a “Goldilocks” phase of brisk growth with low inflation.

The RBI has cut key policy repo rate by 125 points during the year, bringing it down to 5.25%.

India’s headline consumer price inflation rate was 0.71% in November, well below the 2% lower limit of the RBI’s target range. The RBI has forecast it will rise to 2.9% in the March quarter.

The central bank currently expects year-on-year GDP growth to moderate to 6.7% in three months starting next April from a blistering 8.2% in the July-September quarter.

Malhotra told the newspaper that the RBI’s economic forecast had not taken into account the potential effect of trade agreements currently under negotiation, which if sealed would raise the GDP growth rate. “The impact of the US trade deal could be as much as about half a percentage point,” he said.

The central bank had not looked at the possible impact of the EU trade deal as deeply, but it would also increase growth, FT reported quoting Malhotra.

The US has imposed a stiff 50% tariffs on Indian goods, a punishment President Donald Trump has said for the country’s purchases of Russian oil.