RBI raises rates and FY27 growth forecast, with further hikes possible

The Economic Times reports India’s central bank raised its repo rate by 25 basis points to 5.5% and lifted its FY27 growth forecast to 7.1%. It also raised its inflation forecast to 5.2%. Economists say further rate hikes are possible if inflation quickens; Kotak Mahindra Bank’s chief economist expects another 25–50 basis points, with more possible if global risks persist.