The record
Written from the 1 report below. Nothing here is unsourced.
- The US Federal Reserve has raised interest rates by 25 basis points, or 0.25 per cent, taking the federal funds rate to the 3.75%–4% range.
- This is the Fed's first rate increase in more than three years, and policymakers have signalled another hike later this year.
- The report says the decision could affect the Indian rupee, foreign investment, stock markets, crude oil prices and loan costs, as higher US rates may pull foreign money out of markets like India.
- Foreign investors have already sold about ₹2.41 lakh crore of Indian shares so far this year, according to NSDL data, and a weaker rupee with costlier crude oil could raise India's import bill and inflation.
- If the RBI also raises rates in response, home, personal and business loan EMIs could become costlier, making the Fed's stance and the RBI's next decision important for ordinary borrowers.
What to watch next
- Further signals from the Fed on raising rates again later this year
- RBI's stance on interest rates in upcoming policy decisions
- Movement of the rupee and crude oil prices, plus continued foreign investor selling
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Named United States · India · Reserve Bank of India · Donald Trump · Federal Reserve · National Securities Depository Limited
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