Oil above $100 may push India inflation to 6%, RBI could raise rates 50 bps: Kotak

Elevated crude oil prices above $100 per barrel pose a direct threat to India's macroeconomic stability, according to Anindya Banerjee, Head of Commodity and Currency at Kotak Securities. If prices remain elevated, retail inflation is projected to climb toward the 5.8 to 6.0 per cent range by the next quarter.

This inflationary pressure could prompt the Reserve Bank of India to consider a rate hike of 50 basis points to combat price rises and maintain monetary stability.