RBI Deputy Governor Says India's Inflation Will Stay Within Target Band
· Business · Times of India, Economic Times
RBI deputy governor Poonam Gupta said that despite multiple shocks, India's inflation is likely to remain within the target band, unlike several advanced economies where inflation is running above target. She spoke at the SBI Banking and Economics Conclave in Mumbai on Wednesday, noting that advanced economies are nearly twice their target levels, with the US close to 4%. Gupta highlighted that India had faced a wider range of shocks than most emerging economies over the past year and a half, including high US tariffs, oil supply disruptions, El Nino, and capital outflows linked to the global AI boom. Despite these challenges, the economy had emerged largely unscathed and perhaps even stronger structurally, with India's growth highest among peers, inflation anchored, fiscal consolidation continuing, and the financial sector more resilient. She also indicated scope for the rupee to appreciate from current levels, as anticipated by analysts following a special scheme that attracted over
Why it matters
Indian households and businesses benefit from stable inflation, which supports purchasing power and investment decisions. The outlook for rupee appreciation could lower import costs and ease pressure on domestic prices.
Read the original report — Times of India
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