*RBI Cuts Repo & CRR | Policy Stance Turns Neutral* Since Feb 2025, the Reserve Bank of India (RBI) has taken key steps to revive economic momentum: - *Repo Rate* down by 100 bps (6.5% to *5.5%*) - *CRR* cut by 100 bps (4% to *3%*), , phased in 4 tranches (starting Sept 2025). The phased CRR cut is expected to infuse approx. ₹2.5 lakh crore into the banking system - *Policy stance* changed from Accommodative to *Neutral* *What does this mean for us?* *_Individuals_*: - Lower EMIs: Cheaper home, auto & personal loans - Boost in Consumption: With lower borrowing costs, more people may spend on homes, vehicles, education, etc. - Falling FD returns: Harder for conservative savers *_MSMEs_*: - Working capital becomes cheaper - CRR cut releases more liquidity to banks - Easier and cheaper credit encourages capex, hiring, tech upgrades, and opportunity to scale *_Corporates_*: - Lower interest burden - Revival of Capex Plans: Easier to fund expansion, upgrades, and new projects - Rate-sensitive sectors (Real Estate, Infra, Auto) to benefit A ‘ *Neutral*’ Stance – *Why It Matters*: - RBI is now in *wait and watch mode*, balancing inflation & growth - Future rate actions will depend on data (growth, inflation, fiscal risks) It’s now up to *the banks and markets to respond and transmit the benefit*. The RBI has acted — now it’s the economy’s move. #rbi #reporate #crr #monetarypolicy #indiaeconomy #msme #corporateindia #financialstability #growthstrategy #banking #financialmarkets