Wait and watch: Geopolitical threats to inflation outcomes have increased

Crises in West Asia and consequent volatility in prices of petrochemicals have historically led to inflation spikes and broader economic instability in India

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) is meeting this week with three new external members. It is a tribute to the institutional strength that has already been created in less than a decade that change is happening in an orderly manner. The Union government has continued its commitment to appointing independent members to the MPC who have a breadth of experience in academia or financial economics and are outside the governing establishment. The three new members include the head of a major think tank, the director of a premier educational institution,