Maintain the status quo

The current inflation target has worked well

The inflation target of 4 per cent with a lower and upper tolerance level of 2 per cent and 6 per cent under the flexible inflation targeting framework is due for a review this month. India adopted the framework in 2016 and, according to the law, the Central government, in consultation with the Reserve Bank of India (RBI), is expected to determine the consumer price index-based inflation target once every five years. In this context, various stakeholders have suggested several modifications to the framework. Although the government will only review the target and not the overall policy framework, the experience