RBI raises FY27 GDP to 7.1% and inflation to 5.2%
Business
The Reserve Bank of India just updated its outlook for FY27, bumping up its inflation forecast from 5% to 5.2%.
At the same time, it's feeling optimistic about growth, raising the GDP projection from 6.7% to 7.1%.
Basically, prices are expected to climb a bit more than before, but the economy is still looking strong.
RBI hikes repo rate to 5.5%
To help keep inflation in check, RBI has shifted to a "calibrated tightening" approach and upped the repo rate by 0.25%, now at 5.5%.
For those watching prices: inflation is expected at 4.9% in the second quarter of FY27, peaking at 6% in the third quarter of FY27, then easing to 5.7% in the fourth quarter of FY27, showing RBI's balancing act between stable prices and steady growth.