MPC Review: Looking beyond the inflation target and inflation benchmark : News Reel: Business Today
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MPC Review: Looking beyond the inflation target and inflation benchmark

Anand Adhikari | March 2, 2021

The five year term of the Monetary Policy Committee (MPC) with an inflation target of 4 per cent and band of 2 to 6 per cent is ending in March 2021. The government in consultation with the RBI, will decide the new inflation band for the MPC for next 5 years. While some suggest the existing 4 per cent target should be continued, others are insisting on a higher band. Some are also asking to review the benchmark itself from CPI to core inflation or WPI. However, there are many other critical factors which also need equal attention from the RBI as well as the government. Anand Adhikari, Executive Editor, Business Today explains in detail.

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