India retains 4 percent retail inflation target after review
The Indian government on Wednesday kept its retail inflation target at 4 percent within a 2-6 percent band. This framework was last reviewed back in 2021.
The federal government of India has officially retained its retail inflation target of 4% following a scheduled review. According to a notification released on Wednesday, the government will maintain the existing comfort band of 2% to 6%, ensuring continuity in the nation's monetary policy framework. India first adopted this inflation-targeting framework in 2016, which formally assigned the Reserve Bank of India (RBI) the responsibility of managing headline consumer price inflation within the government-mandated range. This framework undergoes periodic reviews, with the most recent assessment occurring in 2021. The responsibility for achieving this target lies with the RBI’s Monetary Policy Committee (MPC). This committee is composed of six members, including three representatives from the central bank and three appointees selected by the federal government.
