MUMBAI, May 13 (Reuters) - India's monetary policy can look through temporary supply shocks but may intervene if inflation pressures become entrenched following the Iran war-driven oil price spike, central bank Governor Sanjay Malhotra said.
Malhotra was speaking at a conference in Switzerland late on Tuesday. Some of his comments are below:
o The government may need to hike fuel prices if the conflict in the Middle East drags on.
o The government has followed fiscally prudent policies so it is "only a matter of time" before higher oil prices are passed on more fully.
o Important for fiscal and monetary policy to coordinate at this time.
o At its April monetary policy review, RBI decided to wait and watch. It was "early days" then. Monetary policy will need to remain nimble and flexible.
o Central banks need to be cautious, follow a policy of "gradualism" in the face of heightened uncertainty.
o RBI is being more and more data-dependent, taking it meeting by meeting.
(Reporting by Ira Dugal)
