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India Poised to Keep RBI’s 4% Inflation Target as Five-Year Review Nears

Officials familiar with the review say continuity is expected, with a formal decision due by March.

Overview

  • Unnamed finance ministry officials say the government is likely to retain the 4% midpoint within the 2%–6% inflation band.
  • The Reserve Bank of India has advised keeping the current framework following internal deliberations and stakeholder consultations.
  • The mandate is set on a five-year cycle, and the next renewal falls due in March 2026.
  • Consumer inflation ticked up in November from a record low the month before but remained below the 4% midpoint.
  • The Finance Ministry has not issued an official comment on the deliberations reported by media outlets.