<h1>Monetary Policy Committee Established to Control Inflation and Support Growth; Inflation Target Set at 4% with 2-6% Range.</h1> The Central Government, in consultation with the Reserve Bank of India (RBI), has established a statutory framework for a Monetary Policy Committee (MPC) to maintain price stability and support economic growth. The MPC, comprising three members from the RBI and three government-appointed experts, will set the benchmark policy rate to control inflation. The inflation target is set at 4%, with a tolerance range of 2% to 6%, effective from August 5, 2016, to March 31, 2021. If inflation deviates from this range for three consecutive quarters, the RBI must report to the government with reasons and corrective actions.