New Delhi, Aug. 2 -- Heightened geopolitical tensions and uncertainty have complicated the task for global central banks. With mounting concerns around energy prices and inflation, we have seen major central banks like the European Central Bank (ECB) and Bank of Japan (BOJ) go for rate hikes, even while the US Federal Reserve has remained on hold. The central banks of Australia, South Korea, South Africa, Indonesia and the Philippines have also raised rates in the past few months.

With looming uncertainties, the US Fed has removed forward guidance from its official statement, opting for flexibility to react to incoming data. The Reserve Bank of India (RBI) has also been signalling that its future action would be data-dependent.

Given th...