Government, RBI sign pact to target CPI at 4%

02-March-2015
Government, RBI sign pact to target CPI at 4%

NEW DELHI, MARCH 2 : The Indian government and Reserve Bank of India (RBI) have signed a monetary policy framework deal that will set a central target for consumer price inflation (CPI) of 4 per cent for the 2016/17 fiscal year, the Finance Ministry said on Monday.

The inflation target will be symmetrical, seeking to keep consumer price growth within two per cent points either side of the central target. It would require the RBI to report to the government if inflation strays outside the target corridor.

Source : thehindubusinessline.com

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