Why RBI is preparing for a difficult FY27 despite upsides from US-Iran ceasefire
Indian Express·2h ago·Neutral
What Happened
The Reserve Bank of India kept its policy repo rate at 5.25% Wednesday, preparing for a more difficult 2026-27 fiscal year. GDP growth is projected to decline from 7.6% in 2025-26 to 6.9% in 2026-27, with downside risks possible. Retail inflation is expected to rise 4.6%, more than double last year's rate. The RBI's forecasts assume crude oil prices will average $85 per barrel in 2026-27, significantly higher than previous assumptions.
Key Entities
Reserve Bank of IndiaSanjay MalhotraMonetary Policy CommitteeGDP growth projectioncrude oil pricesinflation forecastUS-Iran ceasefirerupee depreciation