Ukraine, crude price surge seen as risks to fin stability

Mumbai: The Financial Stability Development Council (FSDC) headed by finance minister Nirmala Sitharaman on Tuesday discussed the possible impact of the situation in Ukraine and rising global crude prices, which were seen as a risk to financial stability. Besides this, the council also took stock of the outcome of the actions of the US Federal Reserve.
In a subsequent interaction with the media, Sitharaman said that while there was a lot of discussion of extreme volatility and global headwinds, no extraordinary measures were discussed. Sitharaman said that it was very difficult to forecast crude prices, which are currently approaching the $100per-barrel level. “We discussed it today when we were looking at the challenges posed to financial stability. Crude was one of the things… the international worrisome situation, where we voiced that we wanted a diplomatic solution for the situation, and all these headwinds. We will keep a watch,” she said.