CURRENT AFFAIRS

Detailed explanation-1: -It had fixed it at 4 per cent plus/ minus 2 per cent (upper limit 6 per cent, lower limit 2 per cent) for the period August 5, 2016 to March 31, 2021, and retained it for the next five years ending March 31, 2026.

Detailed explanation-2: -The government gave the central bank a 4% CPI inflation target up to March 31, 2021, allowing a 2-6% range. On March 31, 2021, the Centre retained the inflation target and the tolerance band for the next 5-year period - April 1, 2021, to March 31, 2026.

Detailed explanation-3: -The target has been set at 4%, with an upper tolerance limit of 6% and a lower tolerance limit of 2%. The upper and lower limits indicate that although it is desirable for inflation to be close to 4%, deviation between these limits is acceptable. The target and bands are revised every five years.

Detailed explanation-4: -As per a notification issued on March 31, 2021, the central government retained the inflation target at 4% (with the upper tolerance level of 6% and the lower tolerance level of 2 %) for the five-year period April 1, 2021 to March 31, 2026.

Detailed explanation-5: -Maintaining stable prices In January 2012, then-Chairman Ben Bernanke made this target official, and both of his successors, including current Chair Jerome Powell, have made clear that the Fed sees 2% as the appropriate desired rate of inflation.