Saugata Bhattacharya, a member of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC), expressed concerns about an adverse shift in the growth-inflation tradeoff, particularly in light of rising inflation expectations and global uncertainties. He noted that the risks of policy mistakes have heightened, necessitating careful calibration of future monetary actions. Bhattacharya emphasized that inflation expectations are signaling potential risks, with various surveys indicating higher expectations among households and enterprises. He acknowledged that the ongoing supply chain disruptions, especially from West Asia, could have unpredictable effects on aggregate demand, particularly impacting micro and small enterprises. The RBI has projected core inflation at 4.4% for FY27, which may provide some reassurance regarding inflation management. Bhattacharya highlighted the importance of understanding the spillover effects from food and fuel prices on core inflation, as well as the complexities involved in inflation transmission dynamics. He concluded that future decisions regarding interest rates will depend on evolving economic data, reflecting the uncertain landscape ahead.