RBI ups FY27 GDP growth forecast to 6.7%, lowers inflation forecast

PTI mumbai

The Reserve Bank of India on Wednesday marginally raised the gross domestic product forecast for the current fiscal to 6.7% while slightly lowering the inflation projection to 5%. In the August bi-monthly monetary policy announced on Wednesday, the central bank also cautioned that the turbulent global economic environment is likely to have some bearing on domestic economic activity. In the June policy, the Reserve Bank of India had projected the GDP growth for fiscal 2026-27 at 6.6% and inflation at 5.1%.  

Although generalised inflation pressures continue to remain modest so far, the risks of higher food, fuel and other input prices translating into a broad-based increase in inflation persist, it said.  Announcing the decision of the Monetary Policy Committee, RBI Governor Sanjay Malhotra said the supply-side pressures caused by the West Asia conflict have eased somewhat since June 2026, leading to the withdrawal of temporary measures undertaken by the government and the normalisation of key input supplies.  "However, the re-escalation of the conflict since the first week of July has amplified volatility in energy prices and renewed uncertainty about supply chains," he said.  Amidst persistent global uncertainty, domestic economic activity has exhibited resilience as reflected by the high-frequency indicators available for Q1:2026-27, he said. 

Premature to talk about charge on UPI transactions

RBI Governor Malhotra said on Wednesday that it was premature to talk about levying charges on unified payments interface transactions, while noting that the cost of providing such payment services ultimately has to be borne by someone. "Right now, the companies, their costs have to be paid by someone, whether it is a public fee or not... But, please keep in mind also that ultimately, the consumer in some way or the other is paying the policy. So... It may not be the same consumer... It may be the general economy. And you don't need to see it directly," he said.