The Reserve Bank of India on Wednesday raised its FY27 GDP growth forecast to 6.7% from 6.6%, citing resilient domestic economic activity and a better-than-expected first quarter, while keeping the policy repo rate unchanged at 5.25% and retaining its neutral stance as it waits for greater clarity on inflation risks from higher oil prices.
The six-member Monetary Policy Committee said growth, although resilient, is expected to be lower in the current financial year, while the outlook remains clouded by uncertainties around global trade policy, the West Asia conflict and weather-related shocks.
The RBI projected GDP growth at 7% in Q1, 6.4% in Q2, 6.5% in Q3 and 6.8% in Q4 of FY27, compared with its earlier projections of 6.6%, 6.3%, 6.5% and 6.8%, respectively. The risks to the growth outlook are evenly balanced.
