RBI raises interest rates, hikes FY27 growth forecast by 40 bps and inflation by 20 bps
In a notable move, the Reserve Bank of India has adjusted the repo rate, increasing it by 25 basis points to 5.50%. This adjustment comes in response to stronger-than-anticipated economic growth alongside rising price pressures. Additionally, the RBI has updated its FY27 GDP growth prediction to 7.1%, indicating optimistic economic performance. Meanwhile, inflation forecasts have been revised…
The Reserve Bank of India (RBI) increased the repo rate by 25 basis points to 5.50% on Wednesday, as robust growth and higher inflation prompted the Monetary Policy Committee to adopt a calibrated tightening stance. This move will raise the Equated Monthly Installment (EMI) for a Rs 1 crore loan over 15 years by approximately Rs 1,500 per month. The RBI also revised its FY27 growth forecast by 40 basis points to 7.1%, while inflation is expected to rise by 20 basis points to 5.2%.
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