RBI's 25 bps Rate Cut Sparks Market Optimism, Boosts Growth

• RBI cut the repo rate by 25 basis points to 5.25% in its fifth bi-monthly monetary policy, drawing positive market response.
• The rate cut is expected to support growth, improve liquidity, and ease pressure on yields, with a "dovish policy" aiming to boost the economy.
• RBI announced significant liquidity measures, including Rs 1 trillion in OMO purchases and USD 5 billion in buy-sell swaps, injecting Rs 1.45 trillion.
• Market participants anticipate further rate easing, stable macroeconomic conditions, and improved earnings growth.
• The rate cut is expected to make loans cheaper, benefiting the real estate sector with lower EMIs and increased sales, particularly in affordable and mid-income housing.

Why It Matters: RBI rate cut boosts economic growth, improves liquidity, and lowers borrowing costs.