MUMBAI: RBI has cautioned that frequent shocks to inflation due to climate change can weaken policy transmission and necessitate tighter monetary policy. RBI’s monetary policy report noted that climate change can increase inflation and stunt growth.The report said global average temperatures are rising, with an accompanying increase in extreme weather events, and the economic and social impact is becoming increasingly evident.It noted three ways in which climate change can impact monetary policy. First, it affects inflation through adverse weather events, disrupting agricultural production and global supply chains. Second, rising temperatures and extreme weather events may alter the…
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Climate change can stoke inflation, stunt growth: RBI
