RBI raises FY27 GDP growth forecast to 7.1%
In short
The Reserve Bank of India raised its FY27 GDP growth forecast to 7.1% after a strong June quarter with 7.8% growth.
It also lifted the repo rate to 5.5% and moved to calibrated tightening. The report says spending at home is holding up, but inflation and global risks are still a concern.
What the reporting says
The Reserve Bank of India raised its FY27 GDP growth forecast to 7.1% after stronger-than-expected economic performance, including 7.8% growth in the June quarter. The update also came alongside a repo-rate increase to 5.5% and a shift to calibrated tightening, while the report says domestic consumption remains resilient and global challenges and inflation concerns persist. It is not stated whether the higher forecast will change near-term policy further.
Why it matters
The RBI's updated forecast suggests stronger expected growth for fiscal 2026-27, supported by a reported 7.8% expansion in the June quarter. The same policy move also raised the repo rate to 5.5% and shifted guidance to calibrated tightening. That combination matters for borrowers, lenders and markets, but the source does not say how long the tighter stance may last or what further steps may follow.