GST impact on economy: Shaktikanta Das snubs apprehension about price rise

India strong enough to absorb US Fed rate hike: Government

India News

The Indian economy is strong enough to absorb the impact of the US Federal Reserve’s interest rate hike, the government said on Thursday. “Indian markets well placed to absorb US Fed rate hike. Gradual approach in future increases augurs well for emerging markets,” India’s Economic Affairs Secretary Shaktikanta Das said in a tweet, a day after the US Fed hiked lending rates for the third time since the 2008 global financial crisis, with the American job market strengthening and the control of inflation rising toward its target. The US Fed on Wednesday raised its key interest rate by 25 basis points (bps), making its third rate hike since the financial crisis and the second time in three months. In December 2016, the US Fed increased its benchmark rate by 25 bps in the first rate hike in 2016 and just the second in a decade. The first was in December 2015. “In view of realised and expected labour market conditions and inflation, the central bank decided to raise the target range for the federal funds rate by 25 basis points to 0.75-1.0 per cent,” the US Fed’s policy-making committee said in a statement released after its two-day meeting in Washington.