RBI must revise its inflation target range -- upwards4 min read 11 Jul 2022, 10:17 PM IST
It’s faced with a long haul of high inflation and very tight money could dampen market sentiment
Last year, the finance ministry and Reserve Bank of India (RBI) agreed to maintain our inflation target at 4%, with a 2% variation on either side as the tolerance limit, from 1 April 2021 to 31 March 2026. This status quo on the target range was preceded by an RBI working paper, Measuring Trend Inflation in India, that explained the importance of aligning the inflation target with trend inflation, as described by the movement of this variable over the years.
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