RBI increases FY27 inflation forecast by 50bps to 5.1% amid West Asia war - Moneycontrol.com

Key points

• The governor said the rate-setting panel decided to keep the core inflation projected at 4.7%, adding that underlying inflation pressure remain benign at this point.
• The central bank kept the repo rate unchanged at 5.25 percent, with stance remaining "neutral".
• The Reserve Bank of India (RBI) on June 5 projected consumer price inflation at 5.1 percent for FY27, citing elevated cost pressures arising from the ongoing Iran conflict, governor Sanjay Malhotra said after the central bank's bi-monthly monetary policy review.
• Malhotra said the Monetary Policy Committee (MPC) retained its projection for core inflation at 4.7 percent, noting that underlying inflationary pressures remain benign for now.
• According to the RBI's latest estimates, CPI inflation is expected at 4.2 percent in the first quarter, 5.1 percent in the second quarter, 5.9 percent in the third quarter and 5.4 percent in the fourth quarter of FY27. "Excluding precious metals, core inflation is projected...