RBI seeks public opinion on inflation, interest rate management
The Reserve Bank of India (RBI) is reviewing how it manages inflation and interest rates, and this time, they're inviting everyone to share their thoughts by September 18.
This review happens every five years, as mandated by a 2016 amendment to the RBI Act, 1934.
The current system—flexible inflation targeting—has been around since 2016.
What's the current inflation target?
Right now, RBI aims to keep inflation at 4%, but there's wiggle room: anywhere between 2% and 6% is okay until March 2026.
The Monetary Policy Committee (MPC) uses this target to decide things like the repo rate, which affects loan and savings rates for all of us.
What are the issues being considered?
RBI's discussion paper asks if we should stick with these targets or change things up—especially since food prices hit Indians hard.
They're also thinking about bigger issues like global price shocks, climate change, and payment tech.
If you've got opinions on how money policy affects your life or future, here's your chance to speak up!