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0 percent in 2012 based on a monetary targeting framework where money supply and credit growth is taken into account.
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Delivering a monetary policy roadmap for 2013 Governor Nivard Cabraal said the Central Bank was will continue to aim for mid single digits inflation over the medium term.
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In 2012 the central bank's record of generating mid single digits inflation was thrown off track after tens of billions of rupees liquidity was injected into the banking system triggering a balance of payments crisis ending the year with 9.2 percent consumer inflation.
Under indicative targets unveiled on January 02, the Central Bank is aiming at inflation of 7.
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0 percent in 2013, moving down to 5.0 percent in 2015 measured by the gross domestic product deflator.
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The GDP deflator, though confined to a calendar year, is calculated on a complex method compared to a price index and is available less frequently and with a greater lag and is therefore less transparent to those affected by the inflation that is generated by a central bank.
Central banks that are successful in generating low levels of inflation target a more