New Delhi, Aug. 22 -- The Reserve Bank of India (RBI) has said that the flexible inflation targeting (FIT) framework has worked well since its introduction and has served the needs of the country even during difficult times.

In a recent report, the RBI highlighted that the FIT framework, which was introduced to maintain the inflation rate in the country, has broadly performed well in terms of price stability.

According to the report, from the inception of the framework till about the end of 2019, inflation in India remained low and stable, averaging around 4 per cent.

It stated, "The experience of FIT framework, introduced in the year 2016 and first reviewed in 2021 has broadly performed well."

However, the report pointed out that the...