- The Reserve Bank of India (RBI) is the central bank of India and is mandated by the government to maintain price stability while keeping in mind the objective of growth. - The Monetary Policy Committee (MPC) of the RBI is specifically tasked with setting the policy repo rate to achieve the inflation target (currently 4% with a band of +/- 2%). - Other bodies like the Department of Consumer Affairs might monitor prices of essential commodities, the Expenditure Management Commission deals with government spending, and the Financial Stability and Development Council coordinates financial regulation, but none have the primary mandate and tools for controlling macroeconomic inflation like the RBI does through monetary policy.
In India, which one of the following is responsible for maintaining price stability by controlling inflation ?
Asked in UPSC IAS 2022 · Topic: Money & Banking (Reserve Bank of India (RBI): Role, Functions, and Autonomy)
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