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RBI’s inflation-forecasting model under scrutiny after consistent misses
The Reserve Bank of India’s inflation-forecasting framework is under fire after its projections missed actual inflation by as much as 0.7 percentage points in the first quarter of FY26 the largest error in nearly six years.
Economists say the model’s persistent over estimation has contributed to a more hawkish stance than warranted and may challenge the central bank’s credibility going forward.
Tags:
- economy
- India
neutral
RBI’s inflation-forecasting model under scrutiny after consistent misses
The Reserve Bank of India’s inflation-forecasting framework is under fire after its projections missed actual inflation by as much as 0.7 percentage points in the first quarter of FY26 the largest error in nearly six years.
Economists say the model’s persistent over estimation has contributed to a more hawkish stance than warranted and may challenge the central bank’s credibility going forward.
Tags:
- economy
- India
1 min read
60 words
RBI’s inflation model faces criticism after persistent forecast errors, possibly denting its policy credibility.
The Reserve Bank of India’s inflation-forecasting framework is under fire after its projections missed actual inflation by as much as 0.7 percentage points in the first quarter of FY26 the largest error in nearly six years.
Economists say the model’s persistent over estimation has contributed to a more hawkish stance than warranted and may challenge the central bank’s credibility going forward.
The Reserve Bank of India’s inflation-forecasting framework is under fire after its projections missed actual inflation by as much as 0.7 percentage points in the first quarter of FY26 the largest error in nearly six years.
Economists say the model’s persistent over estimation has contributed to a more hawkish stance than warranted and may challenge the central bank’s credibility going forward.
Tags:
- economy
- India
- economy
- India
- RBI
- inflation forecasting