Mint Quick Edit | As the rumbles of war reach India, will RBI be pushed into rate hikes this year?
With oil, gas and other Gulf-origin supplies disrupted, inflation looks set to rise. At 4.6% this year, by Goldman’s estimate, it would still be within the Reserve Bank of India’s (RBI’s) tolerance band. That is cold comfort, though. The rupee’s slide to new lows will push up the local prices of all imports, with wide ripple effects, while rupee support by RBI would be hard to sustain without a tighter monetary policy.
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