RBI Projects Inflation to Reach 4.6% for FY27, Maintains Repo Rate

Q: What is the projected inflation rate for FY27?

The projected inflation rate for FY27 is **4.6%**.

Q: What is the current repo rate set by the RBI?

The current repo rate set by the RBI is **5.25%**.

Original: RBI Projects FY27 CPI Inflation At 4.6%, Says RBI Governor Sanjay Malhotra

News 18•Apr 8, 20261 min

In a Nutshell

The Reserve Bank of India (RBI) has projected a Consumer Price Index (CPI) inflation rate of 4.6% for the financial year 2026-27, with quarterly estimates ranging from 4% to 5.2%. Governor Sanjay Malhotra noted that energy prices pose a risk to inflation, while food prices remain stable.

Key Points

01RBI projects CPI inflation at 4.6% for FY27.
02Quarterly inflation estimates are 4% for Q1, 4.4% for Q2, 5.2% for Q3, and 4.7% for Q4.
03Repo rate remains unchanged at 5.25%.
04Energy prices are a significant risk factor for inflation.
05Food price outlook is stable in the near term.

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Full Summary

The Reserve Bank of India (RBI) has forecasted a Consumer Price Index (CPI) inflation rate of 4.6% for the financial year 2026-27, as stated by Governor Sanjay Malhotra during the first bi-monthly policy review. The RBI's quarterly inflation estimates are set at 4% for the first quarter, 4.4% for the second, 5.2% for the third, and 4.7% for the fourth quarter of FY27. Malhotra highlighted that the recent increase in energy prices poses a risk to inflation, although the outlook for food prices remains comfortable. In line with market expectations, the RBI Monetary Policy Committee (MPC) has unanimously decided to keep the repo rate unchanged at 5.25%. This decision reflects the MPC's neutral policy stance as it navigates the economic landscape.

Key Figures

4.6%

Projected CPI inflation rate for FY27

5.25%

Current repo rate

4%

Projected inflation for Q1 FY27

5.2%

Projected inflation for Q3 FY27

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Why It Matters

The RBI's decision to maintain the repo rate at 5.25% may influence borrowing costs for consumers and businesses, potentially keeping loan EMIs stable in the near term.

Who is affected

borrowers, consumers, and businesses seeking loans

What to know

Individuals and businesses should assess their borrowing plans in light of stable interest rates.

FAQ

The projected inflation rate for FY27 is 4.6%.

The current repo rate set by the RBI is 5.25%.

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