The government is considering recommending a looser inflation target for the central bank, allowing it to focus more on economic growth despite price pressures. Consumer Price Inflation band tracked by RBI may be relaxed further from the 2 - 6% range. The government still needs to hold consultations with the central bank before finalising a new framework sometime next year.

RBI governor Shaktikanta Das said what measure to target rests with the government and Parliament, although he doesn’t see a situation where they will move away from tracking the CPI.

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