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RBI Raises FY27 GDP Growth Forecast to 7.1 Percent and Hikes Repo Rate
M
Moneycontrol•07-10-2026, 10:21
RBI Raises FY27 GDP Growth Forecast to 7.1 Percent and Hikes Repo Rate
- •The Reserve Bank of India raised its real GDP growth projection for FY27 to 7.1 percent from 6.7 percent.
- •Q2FY27 growth forecast was increased to 7.2 percent and Q3FY27 to 6.9 percent, while Q4FY27 was retained at 6.8 percent.
- •The Monetary Policy Committee raised the repo rate by 25 basis points to 5.50 percent and shifted its stance to calibrated tightening.
- •Governor Sanjay Malhotra noted that private consumption drove first-quarter growth and domestic economic momentum remains broad-based.
- •The RBI projected consumer price inflation to average 5.8 percent over the remaining three quarters of the financial year.
Key Questions Answered
The Reserve Bank of India raised its real GDP growth projection for FY27 to 7.1 percent from the previous 6.7 percent.
The Monetary Policy Committee raised the repo rate by 25 basis points to 5.50 percent from 5.25 percent and shifted its policy stance from neutral to calibrated tightening.
Governor Sanjay Malhotra noted that global growth is projected to decelerate, driven by downside risks from the re-escalation of the West Asia conflict, rising crude oil prices, and lingering trade uncertainty.
