RBI Governor warns of potential action as oil prices rise
Governor Sanjay Malhotra says the RBI may act if oil price spikes lead to entrenched inflation. He noted that policy must remain flexible and data-dependent.
India central bank Governor Sanjay Malhotra warned the bank may intervene if oil-driven inflation becomes entrenched following the conflict involving Iran. The statement follows an April policy review where officials maintained a wait-and-see approach. Investors face potential interest rate volatility as the central bank shifts toward a more aggressive data-dependent stance.
### Oil Spikes Force Policy Pivot Malhotra told a conference in Switzerland late Tuesday evening that monetary policy can overlook temporary supply shocks. However, he noted that the government might hike fuel prices if Middle East tensions persist. This would likely push Brent Crude Oil costs onto consumers more fully.
