India likely to keep RBI’s 4% inflation target unchanged

Investing.com -- India will probably maintain the Reserve Bank of India’s current inflation target, as the existing framework has proven effective in managing price stability, according to a Bloomberg report on Monday.

The RBI currently operates with a mandate to keep inflation at 4%, within a range of 2% to 6%. This target, which is reviewed every five years, is due for renewal in March.

Finance ministry officials in New Delhi reportedly indicated the government is unlikely to change the target.

The inflation targeting framework, implemented in 2016, has successfully helped control price volatility even during supply disruptions caused by geopolitical events.

The government has also consulted with the central bank regarding the target. Following internal discussions and stakeholder consultations, the RBI has recommended maintaining the current framework without changes, the report said.

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