RBI report on inflation mandate failure cannot be made made public, government tells Parliament

The government on Monday told Parliament that Reserve Bank of India (RBI) has submitted its report on the breach of inflation target for three consecutive quarters but it cannot be made public as per the provisions of the RBI Act.

Union Minister of State for Finance Pankaj Chaudhary told Lok Sabha that the relevant provisions of RBI Act do not allow the report to be made public.

An out-of-turn meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India was held in early November to discuss the report to be sent to the central government for having failed to maintain the inflation mandate.

Under the flexible inflation targeting framework introduced in 2016, the RBI is deemed to have failed in managing price rise if the CPI-based inflation is outside the 2-6 per cent range for three quarters in a row. In October, retail inflation was 6.77 per cent, and is now over the 6 per cent upper band for over three consecutive quarters.

India's average retail inflation during January-March, April-June, and July-September 2022 was at 6.3 per cent, 7.3 per cent, and 7.0 per cent, respectively, data showed.

( With inputs from ANI )

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