Stories
RBI Raises India GDP Forecast to 7.1 Percent and Hikes Repo Rate
C
CNBC TV18•07-10-2026, 10:53
RBI Raises India GDP Forecast to 7.1 Percent and Hikes Repo Rate
- •The Reserve Bank of India raised its FY27 GDP growth forecast to 7.1 percent, up from the earlier projection of 6.7 percent.
- •The central bank unanimously decided to hike the repo rate by 25 basis points to 5.50 percent and shifted its stance to calibrated tightening.
- •RBI Governor Sanjay Malhotra noted that domestic economic activity remains resilient, driven by private consumption and strong investment activity.
- •The RBI raised its FY27 CPI inflation forecast to 5.2 percent, citing broad-based inflationary pressures from food and fuel prices.
Key Questions Answered
The Reserve Bank of India's Monetary Policy Committee raised its financial year 2027 GDP growth forecast to 7.1%, up from its earlier prediction of 6.7% made in August.
The committee unanimously decided to hike the repo rate by 25 basis points to 5.50% while shifting its policy stance to calibrated tightening.
The RBI raised its FY27 consumer price index inflation forecast to 5.2% from the previous projection of 5.0%, citing more broad-based inflationary pressures.
