RBI's MPC to explain first inflation miss since 2016 to government today

India’s monetary policy rate setters will meet on Thursday to write a letter to the government on why they failed to keep inflation within a 2%-6% mandated range for three straight quarters.
 

This is the first time the Reserve Bank of India is writing such a letter after the country switched to a flexible inflation-targeting regime and formed a committee in 2016 to set interest rates. The RBI must detail the steps its taking to bring inflation back to target, and those measures may provide a clue on the central bank’s policy rate path.

The off-cycle meeting has caused some