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There’s also the threat a cheaper yuan poses to exports and economic growth in other countries.

Gold futures on the COMEX division of the New York Mercantile Exchange rose on a weaker US dollar.

The Dow Jones industrial average fell 212.33 points, or 1.2 per cent, to 17,402.84. The S&P 500 rallied 1.3% to 2104, while the NASDAQ added 1.2% to 5102.

Shares of US carmakers with big exposure to China fell.

The Fed’s preferred inflation measure is 1.3 per cent, below its 2-per cent target, which has sown caution among some policymakers.

The BoE’s Inflation Report, showed officials expect annual inflation to tick back up to the 2% target by the third quarter of 2017 if interest rates rise in line with market expectations.

Similarly, factory output growth dropped in May, but the point to note is that it has now been positive for five months in a row, and the average growth since January at 3.5% is much higher than what we had seen in the second half of past year.

The report was not bad enough to derail the Fed’s and markets’ expectations for a rate hike this year, and it was not stellar enough to lock in a September rate hike.

That, at least, is the word from most economists. This year is the first since then that the national unemployment rate for black Americans has dipped below the double-digit mark-and that feat has only been accomplished in 11 states.

Top Wall Street banks still expect the Federal Reserve to raise interest rates in September, but a growing number now believe the central bank is likely to only hike once this year, a Reuters poll found on Friday.

The U.S. economy created a net of 215,000 jobs in July, the Bureau of Labor Statistics reported on Friday.

Gold’s marking time ahead of the U.S. employment report “may be the calm before the storm, with probability calling for another leg lower to the 2010 low of $1,044”, according to technical analysts at ScotiaMocatta.

According to the minutes, Mr McCafferty thought that there were risks “of a more significant overshoot of inflation following its return to the target”.

The unemployment rate is forecast to hold steady at a seven-year low of 5.3 percent, near the 5.0 percent to 5.2 percent range most Fed officials think is consistent with a steady but low level of inflation.

The following are reactions from industry experts and analysts on RBI’s monetary policy announced today.