RBI raises FY27 growth outlook to 6.7%, trims inflation forecast to 5%

The Reserve Bank of India cited resilient consumption and investment in lifting its FY27 real GDP growth forecast by 10 basis points. It lowered the CPI inflation outlook by 10 basis points, while flagging El Niño, oil volatility and supply-chain disruptions as risks to rural demand and consumer prices.

— Filed Wed, 5 Aug, 2026, 10:51 IST · Source BL · Consumer & Economy · Updated

RBI raised its FY27 growth forecast to 6.7% and cut inflation outlook to 5%, citing resilient consumption and investment. It flagged El Niño, volatile oil and supply-chain pressures as risks to rural demand and consumer prices.

Why this matters

The revised forecasts follow RBI's recent decisions to hold the repo rate at 5.25% and retain a neutral stance. Earlier signals focused on steady retail borrowing and funding costs as inflation increased.

Retail-company signals are accelerating, up 206786% QoQ.

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