Pune, Jan 21: Maintaining that the Indian economy was resilient to oil price shocks, RBI Governor Y V Reddy today said the oil prices need to be closely monitored, though it is not a disturbing factor.

Indian economy is resilient to oil prices shocks and the inflation is expected to fall to 4-4.5 per cent, Reddy told reporters on the sidelines of a lecture organised by the National Institute of Bank Management here.
However, at the same time he cautioned that while undertaking economic reforms, care has to be taken to see that there was no social disruption.
Reddy said in view of the prevailing `feel good factor', this was the best time for reforms. "The ideal time for reforms are when the times are good. Reforms are easier made in good times than in crisis situation," he added.
He said the growth rate can be accelerated if "we take steps in fiscal adjustment".
Bureau Report