New Delhi, Oct. 5 -- As major global central banks have shifted towards monetary tightening amid rising inflationary pressures, attention has now shifted towards India's central bank policy decision this week, with investors closely watching how the central bank will respond to rising inflation risks.

The October MPC meeting takes place against a backdrop of growing macroeconomic challenges, as the ongoing war in the Middle East, which has now entered its eighth month, has already sent inflation shocks across major economies, with India being impacted heavily given its heavy reliance on energy imports.

Since the RBI's August policy, crude prices have surged 28%, while India's 10-year bond yield has risen 44 basis points to a 29-month hi...