RBI updates FY26 forecast, cuts repo rate amid strengthening growth

RBI raises GDP growth forecast to 7.3% and cuts repo rate to 5.25%, signaling strong economic momentum supported by rural demand and private investment.

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RBI updates FY26 forecast, cuts repo rate amid strengthening growth

RBI updates FY26 forecast, cuts repo rate amid strengthening growth
The Reserve Bank of India raised its FY26 GDP growth forecast to 7.3% from 6.8% on December 6, highlighting improved rural demand and strong private investment. Alongside this, the RBI reduced the repo rate to 5.25%, aiming to support continued economic momentum, particularly in rural areas. The central bank also lowered its CPI inflation outlook to 2%, reflecting falling food prices. With the real GDP for Q2 FY26 growing by 8.2%, the outlook remains positive despite global challenges.
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  • economy
  • India