Key Points
Economic affairs secretary Ajay Seth sought to delink the Fed rate cut from any potential action by the Reserve Bank of India (RBI)..
The Fed has done what it feels to be the best for the US economy and the RBI will be guided more by the domestic reality, Seth said..
Separately, chief economic adviser V Anantha Nageswaran said at an event that much of the Fed action was factored in by investors and its impact on India could be more muted than on other emerging economies, as the domestic market has already been generating a lot of investor interest.Economic.
NEW DELHI: A sharp 50-basis-point cut in the interest rates by the US Federal Reserve on Wednesday will be positive for the global as well as the Indian economy but it may not significantly drive capital inflows into the country that would warrant attention, top finance ministry officials said on Thursday...
Responding to a question as to whether the RBI should initiate the rate cut cycle following the Fed move, economic affairs secretary Seth said, "This is for the MPC (Monetary Policy Committee) to take a decision at an apt time..
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