India sets inflation target at 4% through March 2031

RBI bound to maintain inflation within 2–6% band

Economy Monetary Policy
The Hindu ·
Change
India mandated the RBI to target 4% inflation with a 2–6% tolerance band from April 1, 2026 to March 31, 2031.
Why it matters
The directive constrains monetary policy decisions, requiring interest rates to align with the inflation target framework.
Implications
  • — RBI must align policy rates — flexibility reduced
  • — Market expectations anchored — borrowing costs influenced

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The Hindu
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