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RBI Warns Middle East Conflict May Trigger Inflation Spillover Effects
According to foreign media reports, Reserve Bank of India Governor Sanjay Malhotra stated that given Indias close economic ties with the Middle East, a prolonged disruption in oil...
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According to foreign media reports, Reserve Bank of India Governor Sanjay Malhotra stated that given Indias close economic ties with the Middle East, a prolonged disruption in oil supplies could exacerbate inflation in India amid the Middle East crisis.

He said the real concern lies in spillover effects, where the initial price shock leads to broader and more persistent inflation. Preventing such a scenario is precisely where monetary policy plays a key role.

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The Middle East conflict is affecting Indias energy security and trade flows. Malhotra noted that the central bank will intervene by influencing inflation expectations rather than directly suppressing demand. For now, it will maintain a wait-and-see stance and rely more heavily on data to make decisions. (mn/w)



This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation.

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