Economics
India Favors Easing Inflation Aim to Support Growth
- Relaxing RBI’s 2%-6% inflation target band is being considered
- Sovereign bonds advance for the first time in three days
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India’s government is considering recommending a looser inflation target for the central bank, allowing it to focus more on economic growth despite price pressures, according to people familiar with the matter.
A consumer-price inflation band tracked by the Reserve Bank of India may be relaxed further from the current 2%-6% range, said the people, who asked not to be identified citing rules. The government still needs to hold consultations with the central bank before finalizing a new framework sometime next year.