Q. Which of the following statements is/are correct about inflation targeting in India?

Select the correct code from the options given below:

1 only

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2 only

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Both 1 and 2

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None of the above

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Solution

The correct option is D None of the above

Explanation:

Statement 1 is incorrect. It is a monetary policy tool by which the RBI tries to keep inflation close to the agreed target.

Statement 2 is incorrect. The RBI in consultation with the government has set the target to keep the retail inflation at 4% with a margin of 2% on either side till 31st march 2026.

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Similar questions

Q. With reference to the “Inflation targeting” in India, consider the following statements:

Which of the above statements is/are correct?

Consider the following statements and choose the option which is correct.

(1) Inflation targeting focuses mainly on achieving price stability as the ultimate objective of Monetary policy.

(2) Monetary policy & fiscal policy have to converge for achievement of inflation targeting.

(3) The basket of items in CPI does not include machinery, chemicals etc.

Q. Which of the following statements is/are correct about Surplus transfer by the Reserve Bank of India (RBI) to the central government?

Select the correct code from the options given below:

Q. Consider the following statements related to Flexible Inflation Targeting (FIT):

Which of the above statements is/are correct?

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