What is the Inflation target range set by Monetary Policy Committee ........

Economics- Phase (I & II) Monetary and Fiscal Policy

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What is the Inflation target range set by Monetary Policy Committee?

Target: 3%, Upper tolerance level: 5%, Lower tolerance level: 1%

Target: 4%, Upper tolerance level: 6%, Lower tolerance level: 2%

Target: 6%, Upper tolerance level: 3%, Lower tolerance level: 9%

Target: 4%, Upper tolerance level: 3%, Lower tolerance level: 5%

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Explanation:

The finance ministry has notified the consumer inflation target for RBI until March 31, 2021, with an upper tolerance level of 6% and lower limit of 2% that was finalised in consultation with Governor Raghuram Rajan, whose term ends next month. This prepares the ground for setting up Monetary Policy Committee that will set rates in keeping with this target. RBI currently sets the rate.