RBI MPC raises FY27 inflation forecast to 4.2%, revises FY26 growth to 7.4%

The Reserve Bank of India’s Monetary Policy Committee (MPC) raised its inflation forecast for Q1 and Q2 of FY27 to 4% and 4.2%, indicating slower disinflation than previously expected. At the same time, the RBI revised its growth projection for FY2025–26 to 7.4% from 7.3%, reflecting stronger economic momentum. The MPC kept the repo rate unchanged at 5.25%, signaling a careful balance between controlling inflation and supporting growth.