economics hard Fill in the Blank

The Urjit Patel Committee, constituted by the RBI in 2013, is best known for recommending the adoption of the ___ as the key anchor for monetary policy formulation.

  1. below
  2. Outcome
  3. first
  4. Consumer Price Index (CPI)

Answer: Consumer Price Index (CPI)

Prior to this, the RBI used the Wholesale Price Index (WPI) to gauge inflation. The Urjit Patel Committee argued that CPI better reflects the actual cost of living for consumers and recommended shifting the monetary policy focus entirely to CPI, leading to the formalization of the inflation-targeting framework.

Topic Indian Economy - Committees
Exam Relevance UPSC Prelims, Banking, SSC
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