RBI's MPC to submit a report on inflation
RBI will submit a report to the government on its failure to keep the retail inflation rate below six per cent for three consecutive quarters beginning January 2022.
image for illustrative purpose
Mumbai: For the first time since the implementation of the monetary policy framework in 2016, the Reserve Bank of India (RBI) will submit a report to the government on its failure to keep the retail inflation rate below six per cent for three consecutive quarters beginning January 2022.
The monetary policy framework, which came into effect about six years ago, mandates the RBI to maintain retail inflation at four per cent with a margin of two per cent on either side.
In case of failure to maintain the inflation target for three consecutive quarters, the central bank, under section 45ZN of the RBI Act, is required to submit a report to the government explaining the reasons and spelling out the remedial actions it would be taking to check the price rise.
