Mumbai, Oct. 23 -- The economy is holding up well despite rising tensions in West Asia, but higher oil prices, supply chain disruptions, and growing inflationary pressures are beginning to cloud the outlook, the Reserve Bank of India (RBI) said in its October Bulletin.

"The Indian economy continued to demonstrate strength as evidenced by high-frequency indicators across both industry and services," RBI said in its State of the Economy article.

Strong consumer demand, a healthy services sector, and double-digit export growth continue to support the economy even as global markets grapple with conflict, high energy prices, and bouts of volatility.

The assessment comes weeks after RBI raised interest rates by 25 basis points and adopted a ...