The RBI's monetary policy framework has worked well, change not required

The Reserve Bank of India (RBI) has released a discussion paper on the monetary-policy framework. As the second review of the flexible inflation-targeting regime approaches in March 2026, the central bank has opened the floor for discussion. The paper makes clear that the current framework, anchored to a 4 per cent target with a 2 percentage point tolerance band on both sides, has served the Indian economy well since its adoption in 2016. The trend-inflation rate has hovered close to the target, except mostly in times of excess volatility, and the credibility of the central bank has visibly strengthened. Household