Economic Buzz: Global uncertainty increased amidst renewed geopolitical tensions, says RBI

Reserve Bank of India stated in its latest monthly bulletin that global economy continues to be marred by geopolitical tensions, trade fragmentation, disruptions in energy supplies, and generalised cost pressures, which are weighing on the financial markets and business confidence. The re-escalation of conflict in West Asia has driven energy prices sharply higher, leading to inflationary concerns across advanced and emerging market economies. Global uncertainty increased during August and September (till 21st) amidst renewed geopolitical tensions, heightened trade policy risks, and concerns over global economic prospects. The central bank noted that though financial market volatility eased in August, it rose in September in emerging market economies (EMEs), reflecting fresh geopolitical tensions and rate hike by major advanced economies (AEs), including the US, while it remained broadly contained in the US and the Euro area.

Powered by Commodity Insights