The Reserve Bank of India would continue to be sensitive to high crude and food prices prevailing globally, its Governor Y V Reddy said.
"These are essential commodities which have great impact on inflationary expectations," Reddy told reporters on the sidelines of a function in Mumbai on Monday.
High food and crude oil prices were in a way anticipated and 'the pressures have been
flat,' he said.
On liquidity, Reddy said, it had been volatile in the past and one has to "take a long-term view and not a contextual view."
Though global financial uncertainties were not entirely unanticipated, the intensity and duration of the global crisis was neither predicted nor expected, he said.
"The global outlook is far more uncertain now than before," he added.
