Economics · Monetary Policy

With reference to inflation targeting by the Reserve Bank of India (RBI), consider the following statements: 1. In May 2016, the RBI Act, 1934 was amended to provide a statutory basis for the implementation of the flexible inflation targeting framework. 2. Under Section 45ZA, the Central Government, in consultation with the RBI, determines the inflation target in terms of the Consumer Price Index (CPI), once in five years. 3. On March 31, 2021, the Central Government retained the inflation target of 4 percent (not 6 percent) with a tolerance band of ± 2 percent for the 5-year period from April 1, 2021 to March 31, 2026. Which of the statements given above are correct?