It gives me great pleasure to welcome you all, especially the foreign delegates, to India and to this historic city of New Delhi for IFG’s Annual Conference.
The upper bound of 2% is in line with the practice of participating national central banks before the start of Stage Three of Economic and Monetary Union (EMU). It enables the existence of a possible positive measurement bias in the HICP to be taken into account and creates a "safety margin" which helps ensure that negative rates of "true" inflation are avoided.