For the first time in nine months, the Reserve Bank of India has cut down its Repo Rate by 25 basis points, lowering it to 7.75 percent. With that the Cash Reserve Ratio has also dropped down by the same figure, 25 basis points, making it to 4 percent.This step is meant to allocate an amount of Rs 18,000 crore (liquid) in the banking system of the country. Both of the reductions are expected to instill a sense of positivity in the market. It’s a favorable stride by RBI in a move to reduce the cost of borrowing for corporates and individuals (as the rate at which RBI lends money to commercial banks has been decreased i.e. repo rate) and by reducing the CRR (funds that the banks have to keep with the RBI), availability of funds will be greatly improved.In all this dropping, RBI has also lowered its projections of growth, 5.5 percent from its earlier estimate of 5.8 percent and even dropping the inflation to 6.8 percent for march end (expected was 7.5 percent) will also be helpful for the common people.The prime point is that how it will help the market and its regulators and with the budget coming up in a month, how this lessening out rates will affect the situation of the system. Real estate is deeply rooted with the financial sector and every change in the monetary policies will bring steep changes in the scenario. Both developers and buyers now can dream high as borrowing cost is expected to be reduced. But as we are heading for an extremely slow growth let’s hope that the economy again get on its foot.