The Russia-Ukraine conflict, which has extended the commodity bull-run, and likely interest rate hike by the US Federal Reserve in March may prompt the Reserve Bank of India (RBI) to re-think its policy normalisation schedule, say economists.
Of the two, soaring Brent crude prices pose a greater threat to the RBI’s dovish stance, they say. "The Union Budget and RBI’s monetary policy announcement came much before this crisis and did not factor in the impact of the crude price shock. Both, the Budget and RBI, hence took a conservative estimate of crude prices $75 per barrel. ...
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