While there are uncertainties, it is perhaps useful to look at the recent inflation history for an assessment of inflationary expectations. The monetary policy stance in other countries is also trying to respond to the oil price shock. In many countries there has been a shift in monetary policy stance from easy to a more neutral one.
In most countries, there is very little evidence of cognisable monetary policy response to the oil price hike per se. In view of the linkages between domestic and international economy, the monetary policy responses of other countries, particularly the developed ones, have also to be carefully watched.