*Summary of the key decisions announced by RBI Governor Sanjay Malhotra:* *Major Policy Decisions* 🔻 *Repo Rate Cut: 50 Basis Points* * *New Repo Rate*: 5.50% (down from 6.00%) * This marks the third consecutive rate cut since February 2025 🏦 *Cash Reserve Ratio (CRR) Reduction* * *CRR cut by 100 basis points: From 4% to 3%* * Implementation will be staggered in four tranches of 25 bps each * Timeline: September 6, October 4, November 1, and November 29, 2025 * Liquidity injection: ₹2.5 lakh crore will be released to the banking system by November 2025 ⚖️ *Policy Stance Change* * Stance changed from 'Accommodative' to 'Neutral' * RBI indicated limited space left for further monetary support to growth *Economic Projections* 📈 GDP Growth Forecast * *FY26 GDP growth maintained at 6.5%* * Quarterly breakdown: * Q1FY26: 6.5% * Q2FY26: 6.7% * Q3FY26: 6.6% * Q4FY26: 6.3% 📉 *Inflation Outlook* * *FY26 CPI inflation revised down to 3.7%* (from 4.0% earlier) * Current inflation at 3.2% - lowest since July 2019 *Key Takeaways:* •⁠ ⁠Home loan EMIs expected to decrease following rate cuts •⁠ ⁠Banks anticipated to pass on benefits through lower lending rates •⁠ ⁠Real estate sector expected to benefit significantly •⁠ ⁠⁠Boosting private consumption a major focus