Morgan Stanley says oil at $110 could prompt RBI to hike rates again
Monday, 6 November 2023 Morgan Stanley warns that if oil prices remain at $110 a barrel, it could destabilize India's economy and force the central bank to raise interest rates. India is highly vulnerable to rising crude prices as it is the third-largest consumer of oil. A $10 increase in oil prices leads to higher inflation and widens the current account balance. If oil prices rise above $110, it would result in higher domestic fuel prices, inflationary effects, and a widening current account deficit.
The 20th century was the century of oil. From farm to fork, factory to freeway, there is no aspect of our modern life that has not been shaped by the oil industry. But as the "post-carbon" era of the 21st century comes into view, there are those who see this as the end of the...
Monday, 6 November 2023
