West Asia war’s second round effects the real concern, RBI in wait-and-watch mode: Governor Sanjay Malhotra

What Happened

RBI Governor Sanjay Malhotra stated the central bank is in 'wait-and-watch mode' regarding West Asia conflict impacts. He emphasized avoiding firm policy commitments amid supply chain disruptions and inflation concerns. Second-round effects pose the real risk if disruptions persist, potentially embedding inflation in price levels. Monetary policy must manage inflation expectations rather than compress demand.

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