India Retains 4% Inflation Target for 5 Years Amid Global Risks

• India maintains its retail inflation target at 4% with a 2-6% tolerance band for the next five years.
• The decision reaffirms the existing monetary policy framework adopted in 2016, despite rising global uncertainties.
• Current retail inflation is 2.75%, but global crude oil prices and West Asia geopolitical tensions pose upside risks.
• Economists welcome the move, stating the band offers RBI flexibility to manage supply-side shocks without aggressive rate changes.
• The RBI's MPC will announce its next policy decision on April 8, having paused rate action previously.