Inflation likely to align with 4% target on durable basis by FY26: RBI DG

The Reserve Bank of India (RBI) expects inflation to align with its 4% target on a durable basis by FY26. RBI Deputy Governor Michael Patra stated that the central bank’s monetary policy measures and supply-side interventions are expected to bring inflation down to the target level. The RBI’s projections indicate that inflation will average 4.5% in 2024-25, supported by stable food and fuel prices. The central bank is also focusing on maintaining price stability while supporting economic growth. The RBI’s efforts to control inflation include adjusting interest rates, managing liquidity, and implementing regulatory measures. The central bank’s commitment to achieving its inflation target is crucial for ensuring macroeconomic stability and fostering a conducive environment for sustainable growth.