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With the US Fed’s decision to maintain status quo in monetary policy creating the buzz that the Reserve Bank of India would indeed cut rates later this month, economic affairs secretary Shaktikanta Das on Friday said the Fed’s move was positive for India, adding that...

“We may continue to see a downward progression for stock markets, as investors adjust to a world where growth is expected to be weaker…”

Mumbai :Under pressure to cut interest rates to lower cost of capital, Reserve Bank of India (RBI) Governor Raghuram Rajan on Friday said keeping inflation low is the key task for sustainable economic growth of the country.

Over the next month the market’s “fixation is going to shift” away from Fed lift-off talk, he says, and toward figuring out how the US and global economy is doing and what the outlook is for third-quarter corporate earnings.

But, she said, “we have some concerns about negative impacts from global developments and some tightening of financial conditions”.

Asian stocks mostly rose Friday, perked by relief that the U.S. Federal Reserve held off on raising interest rates for the time being, but European markets faltered as some investors interpreted the Fed decision as a sign of economic weakness.

Brazil and Russian Federation are deep in recession and South Africa is teetering on the brink, while China’s economy saw its weakest performance in 24 years in 2014. Most emerging markets have witnessed good inflows from foreign investors over the last 10-12 years.

The buck had traded in a narrow range against most of its rivals during the past week as investors waited for the Fed’s decision, even as many expected the central bank to hold off Thursday, said Mark McCormick, global FX strategist based in New York. However, following the...

Higher rates could dent demand for non-interest paying bullion, while boosting the dollar. Prices jumped as much as 1.3 per cent to $US1,133.93, the highest since September 3.

At her news conference, Yellen stressed that even after the first increase from zero, interest rate policy will be “highly accommodative for quite some time”. The two-year Treasury note, which would be more heavily impacted by higher short-term interest rates, had an...

In a statement it issued after its meeting ended, the Fed said that while the USA job market is solid, global pressures may “restrain economic activity” and further slow inflation.

The U.S. Federal Reserve on Thursday kept its benchmark interest rate unchanged, saying the rising uncertainty overseas and low inflation were the key reasons behind the decision. “China is a concern, and oil prices look set to take another leg lower“.

“For emerging-market central bankers, the Fed has given them some much-needed breathing room”, Jonathan Lewis, a principal at New York-based Samson Capital Advisors LLC, said.

The case for raising interest rates was “some way from being made”, he added.

The USA dollar traded a touch higher against major world currencies, with the euro below $1.14 and the yen at 119.8 yen against the greenback. Investors are concerned with when the interest rate hike could come, as it will be the first in almost a decade following the Great...