General News
Middle East Conflict Sends Crude Oil Prices Soaring Past $100, Global Costs Rise
In taking the monetary policy decision, the Committee noted that heightened geopolitical tensions have constricted global supply chains and elevated crude oil prices, with adverse effects on global energy and food prices. In response to rising inflationary pressures, several central banks have begun raising policy rates with likely tightening impact on global financing conditions in the near term.
On domestic growth conditions, the Committee observed continued resilience in economic activity over the first half-year, supported by easing credit conditions, increased private sector credit allocation, and positive business and consumer sentiments.
Barring any spillovers from global supply chain disruptions and weather-related shocks on agricultural output, growth prospects remain broadly positive.