The Reserve Bank of India raised its inflation projection for fiscal year 2026-27 to 5.1 percent from 4.6 percent, citing a surge in crude oil prices driven by West Asia tensions.
Brent crude traded around $110 per barrel as the Strait of Hormuz crisis constrained global oil flows. The RBI said higher LPG, base metal, plastic and rubber prices contributed to the revised outlook.
Inflation is forecast at 4.2 percent in Q1, 5.1 percent in Q2 and 5.9 percent in both Q3 and Q4. Core inflation is projected at 4.7 percent.
The central bank held its repo rate at 5.25 percent while lowering its GDP growth forecast for the fiscal year to 6.6 percent from 6.9 percent.
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Sources:
https://www.bizzbuzz.news/markets/stock-market/rbi-policy-decision-june-2026-what-it-means-for-your-stock-portfolio-1393319