RBI invites input as it reviews its inflation-targeting framework ahead of March 2026
The 4% target has kept inflation in check, boosting RBI credibility
RBI supports headline inflation, reflecting the true cost of living, especially for food
The 4% target has worked well; changing it could undermine market confidence
The 2% band offers flexibility during shocks, essential for India’s food price volatility
A fixed target provides clarity and stability, crucial for maintaining RBI credibility