Consider the following statements regarding the Monetary Policy Committee (MPC) and India's inflation-targeting framework under the RBI Act:

Statements

1. The MPC is mandated to maintain CPI inflation at 4%, with an upper tolerance band of 6% and a lower tolerance band of 2%, and a breach of this band for three consecutive quarters triggers a mandatory report to the government.
2. The repo rate — the rate at which the RBI lends overnight funds to commercial banks — is the primary instrument the MPC uses to signal the stance of monetary policy and influence inflation.
3. The RBI Act provides that the inflation target is set by the MPC itself in consultation with the government, which the government then notifies in the Official Gazette.