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RBI GDP outlook The Reserve Bank of India's Monetary Policy Committee (MPC) has revised its FY27 GDP growth forecast to 6.7% from 6.6%, citing stronger-than-expected economic performance in the first quarter. The central bank has projected Q1 FY27 growth at 7%, raised its Q2 forecast to 6.4%, while retaining its Q3 and Q4 projections at 6.5% and 6.8%, respectively. It has also estimated Q1 FY28 GDP growth at 7.3%. The RBI expects services, stable employment, robust credit growth and the government's infrastructure push to support growth, although uncertainty over the southwest monsoon, El Niño, geopolitics and global trade policy continues to pose risks.
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CNBC TV18•05-10-2026, 18:05
RBI Absorbs Over Two Lakh Crore Rupees Via Overnight VRRR Auctions
  • •The Reserve Bank of India absorbed ₹210192 crore from the banking system through two overnight Variable Rate Reverse Repo auctions.
  • •The central bank accepted ₹200050 crore at a weighted average rate of 5.24% in the first auction, while response to the second auction was tepid.
  • •RBI has been conducting multiple VRRR auctions to absorb excess liquidity and align money market rates with the repo rate.
  • •Banking system liquidity is estimated to be in a surplus of around ₹5.16 lakh crore driven by FCNR (B) deposits and government expenditure.
Read Full Article on CNBC TV18 in English

Key Questions Answered

The Reserve Bank of India absorbed ₹2,10,192 crore from the banking system through two overnight Variable Rate Reverse Repo auctions.

The banking system was flush with liquidity due to heavy mobilisation of FCNR (B) deposits bringing foreign currency into the system, subsequent currency swaps with the RBI providing rupee liquidity, and month-end government expenditures like salaries and pensions.

The RBI accepted ₹2,00,050 crore during the first auction at a weighted average rate of 5.24%.

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