India Overhauls Monetary Policy With Inflation Target

MUMBAI — India’s central bank and the finance ministry have agreed, in the biggest change to monetary policy since opening up its economy more than two decades ago, to introduce inflation targetting to rein in a long history of volatile price rises.

In a document dated Feb. 20 but published on the ministry website on Monday, the two sides set a consumer inflation target of 4 percent, with a band of plus or minus 2 percentage points, by the financial year ending in March 2017.

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The New York Times