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RBI Raises FY27 Retail Inflation Projection to 5.2 Percent and Hikes Repo Rate
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News18•07-10-2026, 11:30
RBI Raises FY27 Retail Inflation Projection to 5.2 Percent and Hikes Repo Rate
- •The Reserve Bank of India raised its retail inflation forecast for the current fiscal to 5.2 per cent from 5 per cent.
- •Governor Sanjay Malhotra highlighted that price pressures are spreading across a range of commodities including food and oil.
- •The central bank hiked the key repo rate by 25 basis points to 5.5 per cent in response to ongoing inflationary pressures.
- •The Monetary Policy Committee also shifted its stance from neutral to calibrated tightening.
Key Questions Answered
The Reserve Bank of India marginally raised its retail inflation forecast for the current fiscal year (FY27) to 5.2 per cent from its previous 5 per cent estimate.
The Monetary Policy Committee unanimously decided to hike the key repo interest rate by 25 basis points to 5.5 per cent and shifted its policy stance to 'calibrated tightening'.
The near-term outlook faces supply-side pressures due to a deficient southwest monsoon, El Nino conditions, high volatility in international oil prices, and broad-based increases in food items like sugar and onions.
