RBI's Reddy says oil prices need careful response

Reserve Bank of India Governor Y.V. Reddy said on Wednesday 10 August that the central bank would carefully respond to volatile oil prices as it impacts inflation and the exchange rate.

"In a situation of volatile oil prices somebody has to take the burden. Its impact is felt on prices, inflation and exchange rate and it's a tricky situation needing careful watch and a careful response," Reddy told students in a talk at the Institute of Insurance and Risk Management.

Reddy also said the central