Empowered by this mandate, the RBI adopted a flexible inflation targeting (FIT) framework under which primacy is accorded to the objective of price stability, defined numerically by a target of 4 per cent for consumer price headline inflation with a tolerance band of +/- 2 per cent around it, while simultaneously focusing on growth when inflation is under control.
This is even more important today as we undertake unprecedented policy actions. We will be transparent about the results of our asset-purchase programs. And we will continue to promote the use of plain language and provide resources that can help demystify our operations for interested Canadians, with features such as multimedia articles in The Economy, Plain and Simple on our website.