The definition of price stability as "a year-on-year increase in the Harmonised Index of Consumer Prices of below 2%", along with the emphasis on the medium term, is designed to enhance clarity, to anchor expectations and to provide a yardstick against which the new independent institution can be held accountable.
*  *  *  The speaker acknowledges the contributions of Shri G Srinivas, Shri Subhas Chand and Shri. Surajit Bose of Reserve Bank of India. 1. Distinguished delegates to the FIBAC 2012, ladies and gentlemen.