RBI Rate Cuts 2025: A Bold Reset for Growth, Not Just a Policy Move

INDIA NEWS

By Aniket Chakraborty June 11, 2025 Arrow

With a 50 bps repo rate cut and 100 bps CRR cut, over ₹2.5 lakh crore in liquidity is being unleashed.

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This isn’t reactionary — it’s anticipatory policymaking in a world of softening inflation.

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India follows China’s playbook of liquidity injection, though on a more localized scale.

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Fiscal reforms like tax recalibration add to the momentum, creating a homegrown easing cycle.

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Bond yields are sliding, equity markets are surging, and rate-sensitive sectors are leading.

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But bold monetary action demands a private sector ready to invest and scale.

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With returns on deposits shrinking, investors are shifting from fixed income to equities.

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The real challenge: turning this liquidity rush into long-term capital formation.

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This isn’t just a rate cut — it’s India’s economic reset moment. Will the ecosystem rise to it?

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