Rising global risks: India will need policy space

The latest assessment by economists at the Reserve Bank of India, published in the October Bulletin, has rightly underlined the increased global economic risks. There are a number of factors affecting the global economy that have further worsened the outlook. Higher global inflation is likely to persist for some time, resulting in sustained monetary tightening. The ongoing Ukraine war remains a big risk for the global economy. Although it is partly being played out in the form of higher energy prices, which have added to the general price pressure, the war can suddenly worsen things in many ways. The conflict,