Reserve Bank of India To Set Inflation Target of 4%

The Reserve Bank of India should make managing inflation its main objective and set monetary policy by committee, a central bank panel has recommended, a shift that would bring its practices in line with many other central banks.

The recommendations are widely expected to be accepted. They were issued late on Tuesday by the panel set up by RBI Governor Raghuram Rajan, which also recommended using consumer prices as the primary measure of price changes and setting an eventual inflation target of 4 percent.

The reforms are aimed at making policy-setting more effective and transparent in a country that has long struggled with high inflation.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu