Reserve Bank of India Governor Sanjay Malhotra stated that the country is unlikely to raise its official inflation target and may consider lowering it over the long term.
Inflation Targeting Framework
India adopted its inflation-targeting framework in 2016, which tasks the Reserve Bank of India with keeping headline consumer price inflation within a band set by the government. The current target is 4%, within a comfort band of 2%-6%.
Malhotra expressed confidence that the economy would continue growing at a fast pace for the foreseeable future, with retail inflation standing at 3.93% in May and the economy growing 7.8% year-on-year in the quarter ended March.
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