The Reserve Bank of India (RBI) announced on Thursday that the recent decline in inflation below its tolerance band of 6% will lead to greater macroeconomic stability.

The central bank also revealed that it aims to bring inflation down to its medium-term target of 4% by 2024. The RBI’s monthly January bulletin, led by Deputy Governor Michael Debabrata Patra, also expressed optimism about the current account deficit (CAD) narrowing down through the rest of this fiscal and the next.

The bulletin highlighted that CAD reached an all-time high of $36.4 billion, or 4.4% of GDP, in the July-September quarter of 2022-23, but with the softening of commodity prices and other costs, corporate performance has been boosted.

The bulletin also noted that the digital economy in India grew 2.4 times faster than the economy between 2014 and 2019.