US Fed Reserve rate hike unlikely to impact India: Ajay Seth

Department of Economic Affairs Secretary Ajay Seth has stated that the government does not see an adverse impact of the United States (US) Federal Reserve rate hike of 75 basis points (bps) on India. The Fed rate hike is the highest increase since 1994. He mentioned that the Reserve Bank of India (RBI) has already taken adequate measures in their two meetings. Citing upside inflationary pressures, the central bank’s Monetary Policy Committee (MPC) raised interest rates by 40 basis points (bps) and 50 basis points respectively in May and June to 4.9 per cent. Seth expects inflation to moderate in the coming months.