$100 Crude Oil Could Send Indian Inflation Soaring

Kotak Securities warns that if crude oil prices surpass $100 per barrel, India's inflation rate could rise to 6%. This projection is based on historical data and current market trends. The Reserve Bank of India (RBI) may also consider hiking interest rates by 50 basis points in response to the potential increase in inflation.

The RBI has been monitoring inflation closely and has already raised interest rates several times this year to control price growth. If crude oil prices continue to rise, it could put additional pressure on the RBI to tighten monetary policy further.