If it ain't broke, don't fix it: RBI working paper on 4% inflation target

Working papers don't necessarily reflect RBI's views, but invariably end up doing just that. This paper, by H K Behera and Michael Patra, could be one such

India’s trend inflation has steadily declined since 2014, from 5 per cent to 4.1-4.3 per cent just before the Covid-19 struck, according to a working paper authored by RBI director Harendra Kumar Behera and deputy governor Michael Debabrata Patra, who is also one of the six members of the monetary policy committee (MPC) deciding on policy rates.  

The working papers are not necessarily the view of the RBI, but most of them end up being precisely so. This paper, with Patra being the co-author, could be one such example. 

The RBI's monetary policy is now conducted under a flexible inflation