BofA Cuts India FY27 Growth to 6.5%

BofA lowered FY2027 India GDP growth forecast to 6.5% from 7%, citing higher oil prices and inflation risks.
Inflation projection was raised to 5.2% from 4.7% as crude oil baseline increased to $92.50 per barrel versus $77.50 earlier.
Manufacturing PMI fell to its lowest since June 2022, cost inflation hit a 43‑month high, and traffic dropped 18% YoY in March.
BofA expects RBI to adopt a more hawkish stance, building in a 50‑basis‑point rate hike in FY27 amid worsening terms of trade.