RBI cuts rates, loans cheaper; boosts liquidity for 'goldilocks' economy

• RBI cut the key benchmark interest rate by 25 basis points to 5.25%, making home and auto loans cheaper.
• This is the first rate cut in six months and the fourth since February 2025, aiming to support a "goldilocks" economy.
• The central bank committed to providing ₹1 lakh crore liquidity boost to the banking sector.
• RBI lowered its inflation forecast to 2% and raised its GDP growth projection to 7.3%.
• The move is intended to support the economy, which has been affected by high US tariffs on Indian goods.

Why It Matters: RBI rate cut means cheaper home/auto loans and lower EMIs for you.