RBI flags Hormuz shock as growth threat and inflation brake risk for India

Energy prices could jump as trade routes stall

In its MPC minutes, the Reserve Bank of India warned that the West Asia conflict and disruptions around the Strait of Hormuz are likely to pressure India’s growth while pushing inflation higher. By stressing global supply chains, the crisis can lift energy prices and weaken external demand, making it harder for policymakers to balance rate and inflation objectives.