The Reserve Bank of India (RBI) is reviewing the retail inflation targeting framework behind monetary policy decision as well as its effectiveness and also plans to hold stakeholders consultations including with the government in June, Governor Shaktikanta Das said.In a bid to keep inflation under specified level, the government in 2016 had decided to set up Monetary Policy Committee headed by RBI Governor entrusted with the task of fixing the benchmark policy rate (repo rate).The six-member panel, which had its first meeting in October 2016, was given the mandate to maintain annual inflation at 4% until March 31, 2021 with an upper tolerance of 6% and a lower tolerance of 2%.”The monetary policy framework is in operation for three and a half years. We have initiated a process of internal review of how the monetary policy framework has worked,” Das told PTI in an interview.
The Reserve Bank of India (RBI) is reviewing the retail inflation targeting framework behind monetary policy, says Shaktikanta Das
