RBI revises FY27 economic assumptions. The Reserve Bank of India has raised its crude oil price baseline to USD 85 per barrel for FY27, up from USD 70 in H2FY26, reflecting recent geopolitical tensions that pushed prices above USD 100 in March. The central bank also increased its rupee depreciation projection to 94 against the US dollar for FY27, compared to 88 previously. These adjustments signal RBI's expectation of sustained inflationary pressures from energy costs and continued currency weakness. The rupee has already weakened significantly, posting its largest annual decline in 14 years at 9.88 percent in FY26. These revised assumptions will likely influence monetary policy decisions and inflation forecasts going forward.
