Tag
#Inflation Targeting
Daily Important
EconomyPrelims + Mains
Does Inflation Targeting Work in India? Explained
Inflation Targeting, which is a decade-old framework for India (4% CPI), is facing difficulties due to a flat Phillips curve, unanchored expectations, and supply shocks. Rate increases could negatively impact growth without reducing inflation. Future actions should include monetary policies and supply-side measures, better communication, fiscal coordination, and India-specific models.
7 Sept 2026 3 min
Mains Analysis Important
EconomyPrelims + Mains
RBI Monetary Policy 2026: Repo Rate Held at 5.25%
The RBI's Monetary Policy Committee held the repo rate at 5.25% with a unanimous 6-0 vote in June 2026 and retained the neutral stance. FY27 CPI inflation is projected at 5.1% and GDP growth at 6.6%. Complete UPSC analysis of the framework, transmission, the West Asia oil shock and the monsoon risk.
27 Jul 2026 25 min