Which framework is used by RBI to control Inflation ........

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

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Which framework is used by RBI to control Inflation?

Policy Targets Agreement

Quarterly Monetary policy announcement

Exchange rate mechanism

Flexible inflation targeting framework

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Explanation:

Flexible inflation targeting is a monetary policy strategy used by Central Bank to maintain the price level within a certain range. This strategy indicates the importance of price stability as the prime factor of monetary policy. Inflation targeting is known to bring more stability, predictability, and transparency in deciding monetary policy. This is because of the argument that rising prices create uncertainties and adversely affect savings and investments