New Delhi, June 13 -- In a bold and unexpected move on June 6, 2025, the Reserve Bank of India slashed the repo rate by 50 basis points to 5.50% and cut the Cash Reserve Ratio (CRR) by 100 basis points. It's the sharpest monetary easing in five years, signaling the central bank's strong intent to boost economic growth while keeping inflation-at just 3.2% in Q4FY25-firmly in check.

This policy surprise has meaningful implications for your mutual fund portfolio-both on the equity and debt sides.

The twin boost of lower interest rates and increased liquidity is set to make borrowing significantly cheaper. Expect this to translate into more home purchases and a surge in demand for passenger vehicles. Add to that a forecast for an above-aver...