RBI Monitors Inflation Risks Amid Middle East Conflict

Deputy Governor Poonam Gupta stated the central bank is monitoring potential second-round inflation effects while expecting a resolution within months. She noted that fiscal coordination and agricultural resilience provide a buffer against current supply shocks.

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The central bank of India is maintaining a vigilant stance regarding the ongoing conflict in the Middle East, monitoring for potential long-term economic disruptions. In a recent interview with the Economic Times, Deputy Governor Poonam Gupta indicated that while the current outlook remains stable, the institution has not dismissed the possibility of second-round inflationary effects if the geopolitical tensions persist.

The official logo of the Reserve Bank of India displayed at its Mumbai headquarters. REUTERS/Francis Mascarenhas/File Photo
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