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flag India's central bank plans to keep its 4% inflation target range, maintaining stability amid economic fluctuations.

flag India's central bank, the Reserve Bank of India, is expected to recommend keeping its 4% inflation target within a 2-6% band for a third consecutive term, following widespread support from economists and market participants. flag The current framework, adopted in 2016, has kept inflation within the target range about three-quarters of the time, despite pandemic-related spikes. flag While some suggested focusing on core inflation, most officials support maintaining headline inflation as the primary target, citing the significant impact of food and fuel prices on overall inflation. flag The RBI may refine its communication but is unlikely to alter the core structure, with a CPI basket review expected next year to potentially reduce volatility.

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