ENA Economy 2026-05-13 16:24:34 <p><span style="font-size:14px"><strong>New Delhi, May 13 (KNN)</strong> Indias monetary policy can accommodate temporary supply-side shocks but may require intervention if inflationary pressures persist following the Iran war-driven surge in global oil prices, Reserve Bank of India (RBI) Governor Sanjay Malhotra said.</span></p> <p><span style="font-size:14px">Speaking at a conference in Switzerland on Tuesday, Malhotra indicated that while initial price shocks may be transitory, policymakers remain alert to the risk of sustained inflation, according to Reuters.</span></p> <p><strong><span style="font-size:14px">Fuel Prices May Be Adjusted</span></strong></p> <p><span style="font-size:14px">He noted that if the Middle East conflict continues, the government may need to raise domestic fuel prices. Given Indias adherence to fiscally prudent policies, higher global oil prices are likely to be gradually passed on to consumers.</span></p> <p><strong><span style="font-size:14px">Policy Coordination Key</span></strong></p> <p><span style="font-size:14px">Malhotra emphasised the need for close coordination between fiscal and monetary authorities during periods of elevated uncertainty, particularly as external shocks begin to impact domestic inflation and growth.</span></p> <p><strong><span style="font-size:14px">Flexible and Data-Driven Approach</span></strong></p> <p><span style="font-size:14px">Referring to the RBIs April monetary policy review, he said the central bank had adopted a wait and watch stance at a time when it was still early to assess the full impact of rising oil prices.</span></p> <p><span style="font-size:14px">He added that monetary policy would remain nimble and flexible, with decisions increasingly guided by incoming data and taken on a meeting-by-meeting basis.</span></p> <p><strong><span style="font-size:14px">Gradualism in Uncertain Times</span></strong></p> <p><span style="font-size:14px">Highlighting the broader approach of central banks, Malhotra said policymakers must act cautiously and follow a path of gradualism in the face of heightened global uncertainty.</span></p> <p><span style="font-size:14px">The remarks underscore the RBIs balanced stance as it navigates evolving inflation risks while supporting economic stability.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span><br /> </p> 46101 https://knnindia.co.in/news/newsdetails/economy/rbi-may-intervene-if-iran-war-leads-to-persistent-inflationary-pressure-governor 2026-05-13 16:24:34 knnindia.co.in