New Delhi, April 23 -- The Reserve Bank of India (RBI) has cautioned that possible second-round effects, where supply shocks could transform into demand-side pressures, require careful and continuous assessment amid the ongoing West Asia conflict, according to the April edition of its bulletin.

The bulletin noted that while the ceasefire between the United States and Iran has provided some breather to the global economy, the overall macroeconomic environment remains uncertain due to persistent geopolitical tensions.

It highlighted that the global macroeconomic milieu has undergone a significant shift, driven by supply chain disruptions and rising energy costs linked to the West Asia crisis. Increased volatility in commodity prices and f...