The move is expected to boost sectors such as real estate, which depends heavily on loans for its consumers to make a purchase.

EMIs on home and vehicle loans will come down, making it easier for individuals to repay their debts. A lower repo rate makes borrowing cheaper for individuals and businesses, which can lead to increased spending and investment.

The RBI's recent 0.25 percentage point cut in the repo rate is under close government scrutiny to ensure banks pass this benefit to consumers. The cen