Russia-Ukraine conflict can hurt growth prospects too: MPC minutes

Policy making has to be nuanced and nimble, says RBI governor Shaktikanta Das

The surge in commodity prices following the Russia-Ukraine war, which puts pressure on inflation, can also hurt growth prospects – the members of the monetary policy committee concurred, meeting minutes released on Friday showed.

“I would like to point out that the hostilities in Europe have imparted an adverse shock not only to inflation, but also to growth,” external member Jayanth Varma said.

“While the inflation shock is more clearly and immediately visible, the growth shock cannot be ignored. There is at least anecdotal evidence that businesses are becoming reluctant to pass on input cost increases to the customers because of concerns