MUMBAI: India's central bank governor has warned that a sustained rise in oil prices, along with social and political turmoil, could jeopardise global economic recovery.
"Apart from inflationary pressures confronting emerging and developing countries, there is the danger of a slowdown in the global economy, unless oil prices moderate from current levels," central bank head Duvvuri Subbarao said.
"The global recovery may be jeopardised by a sustained rise in oil price."
Subbarao was speaking to the spring meeting of the International Monetary Fund at the weekend, joining a chorus of voices including that of the IMF itself warning of perils facing the revitalisation of the world economy.
His remarks were posted on the central bank's website on Monday.
Global oil prices are at a two-year-high, with Brent crude prices at around $123 a barrel, as violence and unrest across the Middle East and North African countries show little sign of abating.
A variety of risks, including political and social turmoil in parts of the world combined with natural disasters, have created uncertainty about global recovery, Subbarao added.
"We have to remain vigilant and be prepared to deal with all threats, old and new, as we repair and rebuild. The global problems we are facing today are complex and not amenable to easy solutions," the bank governor said.
Global food prices were also a source of worry, Subbarao added.
"World food prices have surged considerably due to concerns about low future supplies because of bad weather and low inventories, raising concerns about food security," he said.
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