RBI Projects Indian Economic Resilience Despite Global Headwinds
· Business · Indian Express, Zee News
The Reserve Bank of India stated that the domestic economy remains resilient, supported by strong internal demand and a recovery in manufacturing and services. In its latest 'State of the Economy' report, the central bank noted that improved monsoon conditions and rebounding capital inflows are offsetting global risks, including geopolitical tensions and US trade tariffs. The Monetary Policy Committee has kept the repo rate steady at 5.25% while marginally raising the FY27 growth forecast to 6.7%. However, the bank lowered its inflation projection to 5% despite warnings that headline inflation could peak at 5.9% in Q3 2026-27. RBI officials suggested that a future rate hike remains a possibility if inflationary pressures intensify.
Why it matters
Stable growth and inflation projections provide clarity for Indian consumers and businesses regarding interest rates and the broader economic outlook.
Read the original report — Indian Express
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