RBI defends 4% inflation target, seeks views on possible tweaks



The Reserve Bank of India is reviewing its inflation targeting framework, introduced in 2016, and has invited stakeholder feedback on possible changes. While reaffirming the effectiveness of the 4% target, the RBI is considering alternatives such as using core inflation as a benchmark and revisiting the tolerance band. The review is aimed at strengthening macroeconomic stability in the face of evolving global challenges.

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