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Inflation targeting framework adopted by RBI requires the Monetary Policy Committee to keep CPI inflation within:

A8±2%
BNo target
C4±2% (i.e., 2-6%)
D1±1%
Answer & Solution
Correct answer: C. 4±2% (i.e., 2-6%)
India adopted inflation targeting in 2016 (RBI Act amendment). **Target:** 4% (CPI), with band of ±2% (so 2-6% range). MPC decides repo rate to keep inflation in band over 12-24 months horizon. Target reviewed every 5 years; renewed for 2021-26 at 4±2%.
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