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India Keeps Rajan’s Inflation Target as His Term Nears End

  • Inflation surged 5.8% in June, fastest pace in 22 months
  • Rajan urged successor to continue war on price pressures
Raghuram Rajan.

Raghuram Rajan.

Photographer: Dhiraj Singh/Bloomberg
Updated on

India cemented Governor Raghuram Rajan’s inflation target, assuring investors it would continue the battle against one of Asia’s strongest price pressures even after he leaves the central bank.

The Reserve Bank of India will aim to keep consumer price inflation at four percent through 2021, while allowing the rate to fluctuate in a 2 percent to 6 percent band, the government told lawmakers in a statement on Friday.