West Asia conflict and rising crude oil prices
The latest in this situation
- MPC members signaled rate cuts are off the table, opting for calibrated tightening.
- MPC members, including Sanjay Malhotra and Ram Singh, disagreed on the policy stance during a recent meeting.
- Unlikely Hormuz reopening deal drives upward revision of Brent oil forecasts.
- Iran deploys tactics and attacks on Saudi Aramco, driving up crude oil prices and boosting Canadian energy exports.
- ExxonMobil challenged EU levy legality amid calls from several member states for a windfall tax review.
How it started
RBI raises repo rate by 25 bps to 5.5% amid inflation and global oil pressures
What happened
The Reserve Bank of India’s Monetary Policy Committee raised the benchmark policy rate by 25 basis points, setting the repo rate at 5.5 per cent. This decision followed retail inflation rising to 4.82 per cent in August. The MPC cited domestic threats, including the El Niño phenomenon and deficient monsoon, alongside global oil price effects.
Why it matters
The rate hike is a response to inflation, which is being pressured by rising wholesale prices and high food costs. The move occurs while high US 10-year bond yields continue to attract capital to the United States, which is compounding pressure on the rupee and FII selling in India.
Who's involved
- Reserve Bank of IndiaCentral bank of India that implemented the rate hike
- West AsiaGeopolitical region whose instability drives Brent crude oil prices
- FEDGlobal central bank whose monetary policy influences the Reserve Bank of India
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- West AsiaSpeculative
Geopolitical instability in West Asia could drive up Brent crude prices, affecting local costs for businesses.
- HDFC securitiesSpeculative
The geopolitical and commodity data might affect the revenue of financial services companies like HDFC securities.
How it developed
Newest first. Tap a step to see who reported it.MPC raises rates to combat inflation, citing domestic headwinds and global oil price effects.1 source
RBI reacts to global policy shifts and high fuel costs by conducting open-market bond sales.1 source
- Conflict drives up crude prices affecting local economy, while RBI monitors potential Fed rate hike signals.Sub-event
BoA provides growth estimates as RBI considers shifting monetary policy based on inflation.1 source
Fed hawkishness and oil-driven inflation are pressuring RBI policy room.1 source
- MPC monitors the gap between Indian and US bond rates amid West Asia energy volatility.Sub-event
- MPC members Sanjay Malhotra and Ram Singh discussed how the West Asia conflict is impacting the inflation outlook.Sub-event
RBI policy is influenced by domestic factors and easing West Asia tensions, which cooled Brent crude prices.1 source
Keep exploring
The entities involved
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Reserve Bank of India
central bank of India
-
FED
business
-
West Asia
western region of Asia
Related events
- RBI manages inflation and monetary policy, threatening agricultural output and food prices due to El Nino.
- RBI policy and global factors are currently influencing yields in the Indian sovereign debt market.
- RBI may raise interest rates due to inflation.
- RBI monitors domestic liquidity conditions and assesses India's strong economic fundamentals.
- An economist provided an outlook on the Indian economy, noting the role of the RBI in monetary policy amidst rising global uncertainty due to the West Asia conflict.
Coverage
Newest first; wire copies grouped- business-standard.com
- tribuneindia.com
- livemint.com
- indiatimes.com
- moneycontrol.com
- livemint.com
- aninews.inPL Wealth maintains long-term optimism on Indian equities amid near-term turbulence
- sanantoniopost.com
- mexicostar.com
- moneycontrol.com
- newkerala.com
- indiatimes.com
- moneycontrol.com
- jagranjosh.com
37 more outlets ran the same wire story
- newstodaynet.com
- newyorkstatesman.com
- sandiegosun.com
- indiagazette.com
- batonrougepost.com
- milwaukeesun.com
- iranherald.com
- arabherald.com
- mexicostar.com
- middleeaststar.com
- caribbeanherald.com
- heraldglobe.com
- kenyastar.com
- chinanationalnews.com
- birminghamstar.com
- coloradostar.com
- newzealandstar.com
- greekherald.com
- bangladeshsun.com
- tucsonpost.com
- ohiostandard.com
- hongkongherald.com
- newyorktelegraph.com
- japanherald.com
- irishsun.com
- sierraleonetimes.com
- sanantoniopost.com
- mainemirror.com
- nigeriasun.com
- newkerala.com
- thehindubusinessline.com
- shanghainews.net
- pakistantelegraph.com
- trinidadtimes.com
- brazilsun.com
- afghanistansun.com
- londonmercury.com