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Indian monetary policy makers seen tolerating high inflation for growth


Indian monetary policy makers’ intolerance for an inflation rate higher than their 4% medium-term target will probably only stay on paper.
In reality, economists see the Reserve Bank of India grin and bear price pressures as it seeks to help Asia’s No. 3 economy recover from one of the world’s worst coronavirus outbreaks. The RBI has chosen to look through a recent surge in inflation because it was supply-side driven, and will only turn persistent when demand kicks in, Deputy Governor Michael Patra said at a briefing June 4.
While the wholesale price print due later Monday will probably make for another grim reading, retail inflation is seen hovering above the 5% mark for the third out of five months this year. Monetary policy makers ignored the acceleration and earlier this month retained an “accommodative” stance for as long as needed to restore growth on a durable basis. ....

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India to stick to 2-6% inflation targeting range for next 5 years


Updated Mar 10, 2021 | 22:36 IST
The inflation-targeting framework helped Prime Minister Narendra Modi-led government to tame inflation to an average under 4% for the last three years. 
Representational Image  |  Photo Credit: Thinkstock
New Delhi: India will likely stick to a 2-6% inflation targeting range for the next five years, government officials told
ET Now, but New Delhi wants the central bank to give a significant weightage to core inflation under the new framework.    
India’s inflation-targeting band would complete its five year period on March 31 and is being reviewed by the government and central bank for the next five years. 
The inflation-targeting framework helped Prime Minister Narendra Modi-led government to tame inflation to an average under 4% for the last three years.  ....

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