SBI Research: Anchored inflation expectations key amid global uncertainty
A new SBI Research report released on Wednesday, 29 April has warned that a prolonged US-Iran conflict could make it significantly harder for central banks — including the Reserve Bank of India (RBI) — to contain inflation expectations while limiting damage to economic growth. The report underscores that monetary policy in uncertain times must keep inflationary expectations firmly anchored, with particular attention to orderly exchange rate management.
Key Findings of the SBI Report
Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser at the State Bank of India (SBI), cited RBI Governor Sanjay Malhotra's recent speech at Princeton University as a template for how central banks should navigate turbulence. According to Ghosh, the Governor's address may also be read as a form of forward guidance — signalling the RBI's intent to remain credible, cautious, and adaptive.
