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Inflation Targeting To Remain Work In Progress Till Food Prices Fall: RBI
The New Indian Express
|June 20, 2024
THE Reserve Bank on Wednesday in its monthly bulletin said the goal of aligning inflation with the target of 4% will remain a work in progress as long as food prices pressure persists.
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After the monetary policy committee was set up, the central bank had set an inflation target of 4%, with a leeway of 2 percentage points on either side. This will be up for review in September 2025.
The article further said though many central banks have pivoted towards a less restrictive monetary policy stance in response to the fall in inflation in their economies, back home inflation still remains above the targeted level mostly because of the food prices.
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