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India's missed inflation target spurs 'additional' RBI meeting

Central bank must report to government after prices topped 6% ceiling for 9 months

The Reserve Bank of India, led by Gov. Shaktikanta Das, is obliged to explain to the government why it has been unable to keep inflation under a 6% upper threshold.    © Reuters

NEW DELHI -- The Reserve Bank of India's rate-setting panel meets on Thursday to discuss its failure to keep inflation within its target range for three consecutive quarters for the first time.

The six-member Monetary Policy Committee has a mandate to maintain retail inflation at 4%, with a margin of 2 percentage points on either side. However, for nine months since January, the inflation rate has remained above the upper tolerance band of 6%. It hit 7.41% on the year in September, the fastest pace since April, due to ripples from the COVID-19 pandemic and the war in Ukraine.

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