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RBI deputy governor Patra dovish on Ukraine war impact, says current challenges to inflation are supply side shocks

videos | Mar 11, 2022 10:38 PM IST

RBI deputy governor Patra dovish on Ukraine war impact, says current challenges to inflation are supply-side shocks

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Even as US Fed and ECB remain hawkish, RBI deputy governor Patra, in his first reaction to Ukraine war impact, sounded dovish. According to Patra, "It is reasonable to treat the current challenges to inflation as supply-side shocks."

Even as US Fed and ECB remain hawkish, RBI deputy governor Michael Patra, in his first reaction to Ukraine war impact, sounded dovish.

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According to Patra, "It is reasonable to treat the current challenges to inflation as supply-side shocks."
In central bank jargon, supply-side shock means it is not a demand driven inflation and so no rate hikes are needed.
The statement will be received by markets as dovish and is in sharp contrast to ECB and Fed's stance.
However RBI admits that it will be impacted if emerging markets are severely impacted due to the sustained rise in commodity prices and there is financial instability.
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