Key Points
New Delhi, Sep 19 (PTI) The US Fed rate cut of 50 basis points is unlikely to have any significant impact on foreign inflows into India, Economic Affairs Secretary Ajay Seth said on Thursday...
He said the US Federal Reserve has done what it assesses is good for the largest economy in the world, but the RBI will take a decision on interest rate cut keeping the Indian economy in mind...
It is a positive for the global economy, including the Indian economy..
We have to see how do other economies markets behave, Seth told reporters here.. Late Wednesday, the US Federal Open Market Committee voted to cut the federal funds rate target range by 50 bps to 4.75-5 per cent , from 5.25-5.50 per cent, against expectations of a cut half that size...
India has remained well insulated from rest of the worlds rate movements for now and the tremendous rally in risk assets plus projected economic growth keep an inflationary underlying force in the economy..
You might be interested in
US Fed Policy: FOMC votes unanimously to keep key rates unchanged at 5.25-5.5% for second straight meeting
02, Nov, 23US Federal Reserve Policy: Rate-setting FOMC led by Fed Chair Powell voted unanimously to keep the key interest rates unchanged at 5.25-5.5 per cent for the second straight meeting as US inflation still remains below the 2-per cent target
Have US Fed's consecutive interest rate strikes made any dent on inflation?
27, Jul, 23The Federal Reserve has raised interest rates for the 10th consecutive time in an effort to curb inflation, but experts question its impact on the economy | World News
Fed rate cut positive, but may not have big impact on capital inflows: Top FinMin officials
19, Sep, 24Economic 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.