Reserve Bank of India (RBI) Governor Shaktikanta Das has said that only a limited impact on inflation is expected in view of spiked crude oil prices amidst the ongoing crisis in Saudi Arabia. Drone attacks on the world’s largest oil refinery in Saudi Arabia have resulted in a massive 20 percent surge in crude prices.

Speaking at an economic summit in Mumbai last evening, Mr. Das said, the fiscal numbers given the lower subsidy outgo adding that the full impact will only to visible in the long run. Mr. Das said, he expects inflation to remain below 4 percent in the next 12 months and there is room for more rate cuts given growth slump. He maintained that domestic economy remains resilient as foreign debt is only 19.7 percent of GDP.

The RBI governor said, international environment is clouded with challenging conditions. He said, global growth is slowing down and central banks across the world are bracing up to counter it by easing monetary policy; but there is no recession as yet.