Govt favours retaining RBI's 2%-6% inflation band: Report

The govt is expected to make an announcement soon as the current inflation targeting program, introduced in 2016 and valid for 5 years, expires at the end of this month

India’s government is likely to leave the inflation targeting band for its central bank unchanged, according to people familiar with the matter, while policy makers remain focused on rising prices amid the rebound from the pandemic.

A consumer-price inflation band tracked by the Reserve Bank of India is likely to be retained at the current 2%-6% range, said the people, who asked not to be identified citing rules before the framework is finalized by March 31. The government is mulling small changes to the system, including safeguard options that offer leeway in cases of an exceptional events, they said, without