Bookmark Bookmark

CURRENCY AND FINANCE (RCF) REPORT RELEASED

CURRENCY AND FINANCE (RCF) REPORT  RELEASED

Context

The Reserve Bank of India (RBI) has released a Currency and Finance (RCF) report for the year 2020-21.

Details

  • RBI has said that the current inflation target band (4% +/-2%) is appropriate for the next 5 years.
  • Inflation Targeting: It is a central banking policy that revolves around adjusting monetary policy to achieve a specified annual rate of inflation.
  • The principle of inflation targeting is based on the belief that long-term economic growth is best achieved by maintaining price stability, and price stability is achieved by controlling inflation.
  • The theme of the Report is “Reviewing the Monetary Policy Framework” which assumes topical relevance in the context of the review of the inflation target by March 2021 against the backdrop of structural changes in the macroeconomic and financial landscape that have prompted several central banks to undertake policy framework reviews.
  • The period of study in this report is from October 2016 to March 2020 commencing with the formal operationalisation of the flexible inflation targeting (FIT) framework in India but excluding the period of the COVID-19 pandemic in view of data distortions.

You might be interested:

INDIA AND CHINA ANNOUNCED TO ESTABLISH A HOTLINE

INDIA AND CHINA ANNOUNCED TO ESTABLISH A HOTLINE Context Recently, India and China announced that they have agreed to establish a Hotline. Details The decision between the 2 countries was taken ove ...

a month ago

One Liners of the Day, 28 February 2021

Important Day National Science Day - 28 February. Economy The ____ has released the Second Advance Estimates of National Income, 2020-21 - National Statistical Office (NSO), Ministry of Statistics ...

a month ago

Daily News Digest:27 February 2021

CITY INNOVATION EXCHANGE (CIX) PLATFORM LAUNCHED The City Innovation Exchange (CiX) platform has been launched by the Ministry of Housing and Urban Affairs. The City Innovation Exchange (CiX) wil ...

a month ago

BHAKTI MOVEMENT SAINT GURU RAVIDAS JAYANTI BEING OBSERVED ACROSS THE COUNTRY

BHAKTI MOVEMENT SAINT GURU RAVIDAS JAYANTI BEING OBSERVED ACROSS THE COUNTRY Context Guru Ravidas Jayanti is being celebrated all across the country. Details About Guru Ravidas He was a 14th century ...

a month ago

FIRST-EVER EPIGRAPHICAL REFERENCE TO THE DATE OF DEATH OF KRISHNADEVARAYA

FIRST-EVER EPIGRAPHICAL REFERENCE TO THE DATE OF DEATH OF KRISHNADEVARAYA Context The first-ever epigraphical reference to the date of death of Krishnadevaraya who was the emperor of the Vijayanagara ...

a month ago

MINISTERY FOR RURAL DEVELOPMENT INAUGURATED SARAS AAJEEVIKA MELA 2021

MINISTERY FOR RURAL DEVELOPMENT INAUGURATED SARAS AAJEEVIKA MELA 2021 Context Recently, the Union Minister for Rural Development inaugurated Saras Aajeevika Mela 2021 at Noida Haat. Details It is a ...

a month ago

Provide your feedback on this article: