Extension of Inflation Targeting Framework in India (till 2031)
India has extended its Flexible Inflation Targeting (FIT) framework for the Reserve Bank of India till March 31, 2031, retaining the inflation target at 4% with a tolerance band of ±2% (2–6%). The mandate, effective from April 1, 2026, has been issued under Section 45ZA of the Reserve Bank of India Act, 1934. The framework is implemented through the Monetary Policy Committee (MPC), which determines the policy repo rate to maintain price stability while supporting growth.
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