Question : Maintaining 4% inflation is appropriate for India.RBI working paper(Measuring Trend Inflation in India) has shown this fact.On which date this working paper released ?
(a) 28 December 2020
(b) 26 December 2020
(c) 22 December 2020
(d) 20 December 2020
Answer (a)
Related facts
- RBI has recently(28 December 2020) released a working paper on Inflation trend in India.
- These papers present research in progress of the staff members of the Reserve Bank and are disseminated to elicit comments and further debate.
- This study shows that maintaining 4% inflation is appropriate for India.
The paper notes that estimating trend inflation with regular updates is important for the formulation of monetary policy, irrespective of the country setting. - In India, this exercise acquires priority in the context of the flexible inflation targeting formally instituted in June 2016, which commits the central bank – the RBI – to a consumer price inflation target of 4 per cent with a symmetrical tolerance band of +/- 2 per cent around it, the authors said.
- It is notable that six-member panel, which had its first meeting in October 2016, was given the mandate to maintain annual inflation at 4 per cent until March 31, 2021, with an upper tolerance of 6 per cent and lower tolerance of 2 per cent.
By — Pankaj Pandey.
Link:
https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=20262