Current Affairs · Monetary Policy & Inflation Targeting
Regarding the implementation and statutory requirements of the retail inflation targeting framework in India, which of the following statements is/are correct? 1. The Government of India has decided to increase the retail inflation target to 5% for the upcoming five-year cycle to accommodate higher growth volatility. 2. The inflation targeting framework is a statutory application mandated under Section 45ZA of the Reserve Bank of India Act, 1934. 3. The framework includes a tolerance band of ±2%, meaning the Reserve Bank of India must maintain inflation within a range of 2% to 6%. 4. The retention of the 4% inflation target is applicable for the five-year period spanning from April 1, 2026, to March 31, 2031. Select the correct option:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11, 2, and 3 only
- 21 and 4 only
- 32 and 3 only
- 42, 3, and 4 only✓
Correct answer
2, 3, and 4 only
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