RBI Governor Sanjay Malhotra signals possible 4% inflation target review
Reserve Bank of India Governor Sanjay Malhotra just hinted that India's long-term inflation target could see some changes down the road.
Right now, the target is set at 4%, a number that was locked in earlier this year and will stay put for five more years.
Malhotra pointed out that since 2016, this system has helped keep inflation in check.
Malhotra notes 3.93% inflation 7.8% growth
Malhotra isn't expecting any sudden hikes to the inflation target but suggested it could be adjusted gradually to match what other advanced economies are doing.
For now, India's retail inflation was a cool 3.93% in May (so under the current goal) and the economy grew a solid 7.8% year over year in the quarter ended March.
Even if prices rise a bit soon, he sounded confident that India can keep growing strong within these limits.