Stories
RBI Raises FY27 Inflation Forecast to 5.2% and Hikes Repo Rate
N
News18•07-10-2026, 10:21
RBI Raises FY27 Inflation Forecast to 5.2% and Hikes Repo Rate
- •The Reserve Bank of India raised its FY27 consumer price inflation forecast to 5.2% from 5% due to expected elevated price pressures.
- •The Monetary Policy Committee increased the repo rate by 25 basis points to 5.50% and shifted its stance from Neutral to Calibrated Tightening.
- •Global inflation risks, energy costs, and input price pressures contributed to the central bank's cautious outlook and tighter monetary policy.
- •Despite inflation concerns, the RBI upgraded its FY27 real GDP growth forecast to 7.1% from 6.7%, citing a strong and resilient economy.
Key Questions Answered
The Reserve Bank of India raised its FY27 consumer price inflation (CPI) forecast to 5.2% from 5% projected in its August policy.
The Monetary Policy Committee raised the repo rate by 25 basis points to 5.50% and shifted its policy stance from Neutral to Calibrated Tightening.
The RBI raised its FY27 real GDP growth forecast to 7.1% up from the previous 6.7% projection.
