(Bloomberg) -- India’s inflation will likely move toward the 4% target on a “durable basis” in the coming fiscal year, the central bank’s Deputy Governor Michael Patra said.
CPI is expected to average 4.5% in the current financial year ending March 2025, “before aligning with the target on a durable basis in 2025-26,” Patra said in a speech about inflation targeting and posted on the Reserve Bank of India’s website on Tuesday.
The RBI kept its benchmark interest rate unchanged last week, while easing its policy stance to signal a possible pivot. Governor Shaktikanta Das has repeatedly said he wants to bring inflation down to the target level on a durable basis.
Patra added that inflation targeting-based monetary policy may face greater challenges in future due to climate risks. Policy frameworks of the future need to be “more robust, realistic and nimble, while exploiting synergies with prudential, fiscal and structural policies and leveraging on technological transformations,” he said.
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