India's inflation target band up for review: FM Nirmala Sitharaman

Govt seeks RBI's view on tweaks to CPI basket and if old weightings need to be changed

food, vegetables, inflation, price rise
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CPI inflation was back within the MPC’s range of 4 (+/-2) per cent since December 2020, and fell to a 16-month low of 4.06 per cent in January

Nikunj Ohri New Delhi
India’s inflation target band of 2-6 per cent is up for review as the five-year term for the Monetary Policy Committee’s (MPC’s) inflation-targeting framework draws to a close, Finance Minister Nirmala Sitharaman said on Thursday. “The MPC’s term is coming to an end. Inflation targeting will also have to be reviewed. We shall do that,” Sitharaman was quoted as saying by Reuters.

The government has asked the Reserve Bank of India (RBI) for its views on the targeting framework, said a senior government official. The government has also sought the central bank’s suggestion on tweaks to the CPI basket and if the old weightings need to be changed or recalibrated, said the official. The new framework would be announced by March

First Published: Feb 19 2021 | 01:02 AM IST

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