Question

The inflation targeting policy adopted by the Reserve Bank of India in 2015 prescribed the targeted inflation to vary between ______ percent.

• A. 2 – 6
• B. 2 – 7
• C. 3 – 8
• D. 3 – 7

Hint:

The RBI's inflation targeting framework aims to maintain inflation within the range of 2% to 6% to ensure price stability in the economy.

Answer 1

The Correct Option is A

In 2015, the Reserve Bank of India (RBI) adopted an inflation targeting policy with the aim to control inflation and stabilize the economy. Under this policy, the RBI set a target for consumer price index (CPI) inflation, which was prescribed to be within the range of 2% to 6%.
This policy framework was introduced to ensure that inflation stays within a manageable range, which is crucial for economic stability. The target range has been a central part of India's monetary policy.
Final Answer: \[ \boxed{2 \, - \, 6} \]