A pause at this juncture allows for recalibration of monetary policy after a fairly brisk 2.5-percentage-point increase in policy interest rates that have been transmitted, equally briskly in the RBI's view, to the financial markets. The credit market in India is being tightened in an orderly manner with little evidence of stress in the banking channel due to the central bank's liquidity drawdown. Credit growth is robust and second-order effects of costlier credit are yet to be established as they filter through the real economy.