Sanjay Malhotra’s baptism by fire amid West Asia war’s economic consequences

Synopsis India’s central bank governor faces a critical test as war disrupts global markets. Inflation and growth are key concerns. The Reserve Bank of India must navigate these uncertainties to manage interest rates and the rupee’s value. The governor’s decisions will shape the nation’s economic outlook. Balancing inflation control with growth support is paramount. ‘Maybe, it won’t come to that.’ A perverse logic pervades most forecasts on the war’s economic consequences. The unstated refrain is that some solution, not a neat resolution, but a cold peace, the kind of hostile truce one can imagine between racists and fanatics, would emerge….