RBI Governor Sanjay Malhotra has highlighted growing challenges facing the global economy as geopolitical tensions in West Asia continue to fuel higher energy prices and disrupt supply chains. Speaking on the evolving economic landscape, Malhotra noted that central banks across major advanced economies are becoming increasingly cautious as inflation risks re-emerge and concerns over debt sustainability persist. While equity markets remain supported by optimism surrounding artificial intelligence-driven growth, bond markets continue to reflect investor unease over inflation and monetary policy. The RBI chief also pointed to heightened volatility in currency markets, with risk-off sentiment and safe-haven demand weighing on several emerging market currencies amid an uncertain global outlook.
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