The Reserve Bank of India cut its repo rate by 50 basis points to 8% and announced other monetary measures to boost the economy. It forecasts GDP growth of 7.3% for fiscal year 2013 assuming normal monsoons, but expects inflation to remain in the 6.5% range. Equity markets rose in response to the rate cut and bond yields declined, while the banking sector did not see major gains due to some policy measures that may negatively impact margins. The central bank maintained a cautious stance and signaled low probability of further rate cuts in the near term.