New Delhi, Aug. 28 -- The current inflation band in India can be narrowed to 1 to 1.5 per cent compared to the existing 2 per cent to improve its effectiveness, according to a report by JM Financials.

Currently, the Reserve Bank of India's Monetary Policy Committee (MPC) follows a framework that targets inflation within the 2-6 per cent band, with 4 per cent as the midpoint.

The suggestion comes in the backdrop of the RBI releasing a discussion paper on reviewing the monetary policy framework.

The paper has assessed the progress of India's Flexible Inflation Targeting (FIT) framework since 2016. It looked at how the framework has helped reduce average inflation, improve policy credibility, and bring more transparency to policy-making....