Business Standard

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

RBI
Premium

The paper comes at a time when there are a few discussions that the medium-term inflation target should be increased from 4 per cent. | Photo: Bloomberg

Anup Roy Mumbai
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

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in