Crude oil staying above $100 a barrel could push India's retail inflation towards 6% by the next quarter and put the Reserve Bank of India under pressure to raise interest rates by as much as 50 basis points this financial year, according to Anindya Banerjee, Head - Commodity and Currency at Kotak Securities.
Banerjee said sustained high oil prices could ripple through the Indian economy, affecting households, companies, oil marketing companies and government finances. India's current account deficit could widen to 1.8-2% of GDP in FY26 from around 0.5-0.6% in the previous financial year, he said.
