CEA Nageswaran sees RBI holding fire if Fed hikes again

Posted on:
Key Points

Indias central bank wont face pressure to hike interest rates if the US Federal Reserve tightens monetary policy further, the countrys top economic adviser to the government said...

The RBI cycle has not been so tightly linked to the Fed cycle mainly because external finances and financial stability are much better now, Indias Chief Economic Adviser V Anantha Nageswaran said in an interview with Bloomberg TVs Haslinda Amin on Thursday..

If the Fed were to hike 25 basis points, or even two times, that will not put pressure on the RBI to follow suit...

The Federal Reserve left interest rates unchanged on Wednesday while still keeping alive the possibility of more hikes given inflation remains above its 2% target and economic growth is strong...

The RBI has some degree of freedom than before given strong macroeconomic fundamentals, Nageswaran said.. Indias economy is on track to grow more than 6% this year, with risks from oil prices and weather manageable, the chief economic adviser said...

You might be interested in

Federal Reserve delivers small rate hike amid recent financial turmoil in U.S.

22, Mar, 23

The Federal Reserve raised interest rates by a quarter of a percentage point on March 22 amid recent turmoil in financial markets spurred by the collapse of two U.S. banks, Silicon Valley Bank (SVB) and Signature Bank.

After RBI MPC verdict today, US Fed to unveil policy decision next week: Here's what experts predict

08, Dec, 23

Market analysts underscore that the recent statements from the US Federal Reserve officials indicate that the US central bank is currently not considering raising interest rates in its last policy meeting of 2023.

Indian government's dividend income from RBI in FY25 to be similar to FY24, source says

26, Feb, 24

RBI dividend: The Indian government expects dividend income from the Reserve Bank of India to remain consistent with last year. A surplus of 874.16 billion rupees was transferred to the government for fiscal year 2022/23, with a projected surplus transfer of 1.02 trillion rupees for fiscal year 2025. The government will review its borrowing requirements to potentially reduce them.

Fed to publish review of Silicon Valley Bank supervision April 28

26, Apr, 23

The Federal Reserve will publish its internal review of its supervision of Silicon Valley Bank on Friday, April 28 at 11 a.m. ET (1500 GMT), the central bank said Tuesday.

Rupee falls to 83.2850/USD, lowest in one year

01, Nov, 23

But likely intervention from the Reserve Bank of India (RBI) capped further losses, traders said. The RBI likely sold U.S. dollars near 83.28 levels but the intervention was not aggressive, a foreign exchange trader at a private bank said.

Oil prices rise on expectation of strong global demand and possible Fed interest rate cut

13, Mar, 24

International Business News: Oil prices increased on Wednesday as the market anticipated strong global demand and a possible interest rate cut by the Federal Reserve. Brent future

Dollar rebounds from 2-1/2 month low after Fed minutes

22, Nov, 23

By Samuel Indyk and Brigid Riley LONDON (Reuters) -The dollar rebounded from a 2-1/2 month low on Wednesday as the minutes from the Federal Reserve's last meeting hinted that interest rates would

America’s debt problem is too big for the bond vigilantes

30, Sep, 23

Surging deficits and bond yields create an opening, but investors are likely to take a painful hit this time.

High policy rate not impinging on growth, economic activity well sustained: RBI Guv Das

09, Oct, 24

Reserve Bank Governor Shaktikanta Das has stated that elevated interest rates are not hindering economic growth, which remains robust. The RBI kept the policy rate unchanged, with growth projected at 7.2% for the fiscal year. Future rate decisions will hinge on growth-inflation dynamics.