4% inflation target likely to stay

THE GOVERNMENT IS likely to retain the existing inflation target for the central bank, with the setup seen as effective in managing prices, according to people familiar with the matter.

- SIDDHARTHA SINGH

The Reserve Bank of India (RBI) currently aims to keep inflation anchored around 4%, the midpoint of a 2-6% range mandated by the government. The target for RBI is set every five years and is due in March.