RBI Raises FY27 Growth Forecast To 7.1%, Flags Rising Inflation Risks

New Delhi, Oct 22 (KNN) The Reserve Bank of India (RBI) has raised its growth forecast for 2026-27 to 7.1 per cent from 6.7 per cent projected in August, while warning that rising inflationary pressures pose risks to the economic outlook.

RBI Raises Growth Forecast To 7.1 Per Cent

“Amidst the turbulent global backdrop, the Indian economy has shown remarkable resilience,” RBI Governor Sanjay Malhotra said in the minutes of the Monetary Policy Committee (MPC) meeting released on Wednesday.

The MPC, which met from October 5-7, voted unanimously to raise the repo rate by 25 basis points to 5.5 per cent, marking the first increase since February 2023, reported The Economic Times.

Broadening Inflationary Pressures Raise Concerns

Malhotra flagged signs of broadening inflationary pressures, noting that 37 per cent of commodities in the Consumer Price Index (CPI) basket recorded inflation above 4 per cent in August, compared with 20 per cent in March.

The latest assessment highlights the RBI's improved growth outlook alongside concerns over persistent inflation risks and an uncertain global economic environment.

(KNN Bureau)