The 4% inflation target, with a tolerance band, provides continuity and anchors expectations in an uncertain macroeconomic environment
Since 2016, flexible inflation targeting has reduced volatility and improved policy clarity, aiding communication and market stability
The West Asia conflict has raised uncertainty, with oil price shocks posing risks to both growth and inflation
Rising energy costs, gas shortages, and a weakening rupee could push up prices, especially if the conflict persists
Duty cuts on fuel and a widening current account deficit add pressure on government finances and currency stability
The RBI must balance inflation control with growth concerns, making policy decisions more complex amid global uncertainty