Which of the following statements is/are correct with reference to the inflation target?

Answer & Explanation

Option: Both A & B

Explanation:

Maintaining the inflation target at 4% is appropriate for India, according to a working paper titled “Measuring Trend Inflation in India” released by RBI. The 4% target for inflation with an upper tolerance limit of 6% and a lower limit of 2% was set by the Centre in consultation with the RBI in 2016 and its validity expires on March 31, 2021.