Government, RBI sign pact to target CPI at 4%

The government and Reserve Bank of India have signed a monetary policy framework deal that will set a central target for consumer price inflation of 4 percent for the 2016/17 fiscal year, the finance ministry said on Monday. Budget 2015: Complete Coverage

The inflation target will be symmetrical, seeking to keep consumer price growth within two percentage points either side of the central target.

It would require the RBI to report to the government if inflation strays outside the target corridor.