Objective of durably aligning inflation with target far from assured

Dashing hope for any reduction in policy repo rate in the near future, the Reserve Bank of India’s (RBI’s) state of the economy report pointed out that a combination of factors poses a risk to inflation, and as a result, aligning inflation to the 4 per cent target is far from assured.

The target for the central bank is to maintain inflation at 4 per cent, with a band of 2 per cent on either side.

The report said the softer inflation prints for September and October and the prolonged pause in the monetary policy stance have engendered a certain ‘hypermetropia’ among