- By Aditya Pratap Singh
- Fri, 05 Jun 2026 11:14 AM (IST)
- Source:JND
RBI MPC Outcome: Reserve Bank of India on Friday downgraded India's GDP growth projection to 6.6 per cent for FY27 from the earlier 6.9 per cent amid rising concerns due to elevated crude rates amid the West Asia conflict. The GDP growth forecast is revised for the second time in 2026.
Additionally, announcing the outcome of the MPC, the RBI governor said that the central bank also revised the inflation forecast for FY27 at 5.1 per cent from the earlier estimate of 4.6 per cent.
GDP Growth Forecast
RBI, in its June policy meeting, lowered GDP growth projections for the financial year 2026-27 (FY27) to 6.6 per cent. Earlier, the growth was forecasted at 6.9 per cent for the financial year. The revision came amid the rising impact of the Middle East crisis on growing economies due to elevated crude oil prices in the international market and disruptions to the Southwest monsoon.
Quarterly GDP Growth Forecast
Q1 Fy27- 6.6 per cent
Q2 FY 27- 6.3 per cent
Q3 Fy17- 6.5 per cent
Q4 Fy26 6.8 per cent in Q4
At the same time, India's GDP growth forecast for the last financial year--year ended on March 31, 2026-- is expected at 7.6%, the RBI governor said.
The RBI Governor said that domestic economic activity has remained largely stable since the outbreak of hostilities in the Middle East, as private consumption remains strong and fixed investment remains robust.
Malhotra said that the southwest monsoon will impact agriculture and rural demand; however, continued growth in services, the impact of GST, and stable employment will continue to support urban consumption.
Inflation Forecast
RBI projected CPI inflation at 5.1 per cent for the financial year 2026-27 from 4.6 per cent--the earlier projection, Governor Malhotra said while announcing the outcome of the bi-monthly policy review meeting.
Quarterly Projection
Q1 Fy27- 4.2 per cent
Q2 FY27- 5.1 per cent
Q3 FY27- 5.9 per cent
Q4 FY27- 5.4 per cent
According to the governor, the rate-setting panel decided to keep the core inflation projected at 4.7 per cent.
RBI Keeps Repo Rate Unchanged
The six-member RBI Monetary Policy Committee anonymously decided to keep the repo rate unchanged at 5.25 per cent, RBI governor Sanjay Malhotra said on Friday. The decision to keep the repo rate unchanged for the second time came as it weighed the impact of rising energy prices and supply disruptions caused by the West Asia crisis.