Crude prices risk can be treated as supply shock: RBI deputy governor Patra

Michael Patra adds that while geopolitical fallout is being assessed, it is reasonable to treat it as a supply shock at this stage in setting monetary policy

The recent surge in global crude oil prices due to the war in Ukraine is an overwhelming risk but seen as a supply shock from a monetary policy point of view, Reserve Bank of India’s Deputy Governor Michael Patra said on Friday.
 

The Russia-Ukraine conflict has pushed global crude oil prices over $100/bbl, for the first time since 2014. The surging prices will have an impact on domestic inflation as the country imports more than 80 per cent of its crude oil requirement. Patra said the impact on growth and inflation projections of RBI will be reviewed during the next