Which of the following statements is/are correct with reference to the inflation targeting?
A. India had switched to an inflation target-based monetary policy framework in 2015, with the 4% target kicking in from 2016-17.
B. Union Finance Ministry recently announced that the inflation target for the five years between April 2021 and March 2026 will remain unchanged at 4%, with an upper tolerance level of 6% and a lower tolerance level of 2%.
C. Both A & B
D. None of these
Explanation:
Union Finance Ministry recently announced that the inflation target for the five years between April 2021 and March 2026 will remain unchanged at 4%, with an upper tolerance level of 6% and a lower tolerance level of 2%. India had switched to an inflation target-based monetary policy framework in 2015, with the 4% target kicking in from 2016-17.
