By Swati Bhat
MUMBAI (Reuters) – India’s central bank is expected to recommend retaining an existing inflation target for a third consecutive time following feedback from stakeholders who backed the framework, two sources familiar with the matter said.
Flexible inflation targeting in India mandates a 4% headline inflation target within a tolerance band of 2% to 6%.
The Reserve Bank of India (RBI) had sought views from economists, market participants and other stakeholders ahead of March 2026, when that target is set to expire.
Most respondents back continuation of the existing structure, the sources said.
“There have been no big changes that are sought,” said a senior source directly aware of the feedback. “Most feel the framework has worked quite well.”
While tweaks may be considere