Former Reserve Bank of India Governor Advises Caution on Oil Shocks
Former Reserve Bank of India Governor Duvvuri Subbarao stated that central banks should initially look through oil shocks and only tighten monetary policy if the disruptions persist. He defended the Reserve Bank of India's decision to raise the repo rate by 25 basis points to 5.50 percent on October 7, arguing that waiting until October provided clearer data on inflation. Furthermore, Subbarao noted that India's current economic fundamentals are much stronger than during the 2013 taper tantrum.
Originally published by GULF NEWS | By Stacy Pereira | 3 November 2026 | Read original: https://gulfnews.com/business/ex-rbi-chief-look-through-oil-shocks-act-only-if-they-last-1.500732929
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