Rating agency Moody's believes an interest rate cut at US Federal Reserve June's meeting is likely off the table given stubborn inflation in the country.
US Federal Reserve officials felt that the key interest rate was likely at its peak and it would be appropriate to loosen the monetary policy stance at some point this year, Minutes of its latest policy review meeting showed.
Indian stock indices traded firm Thursday after the opening bell, tracking a global stock rally after the US Federal Reserve, in its latest monetary policy review meeting, maintained its projection of three rate cuts this year.
Indian stock market indices extended their losses from the previous week, though marginally, tracking weak US market cues and concerns of over-heating in small and midcaps space.
Reducing policy restraint too soon or too much could result in a reversal of progress was made in terms of inflation and ultimately require even tighter policy to get inflation back to 2 per cent target, US Federal Reserve Jerome Powell said, as he indicated the central bank is no rush to cu
US Fed had raised interest rates from near zero to now 5.25-5.50 per cent in the fight against inflation. Raising interest rates is a monetary policy instrument that typically helps suppress demand in the economy, thereby helping the inflation rate decline.
The US Federal Reserve in its January meeting voted to leave the key interest rate unchanged at 5.25-5.50 per cent, keeping the policy rate unchanged for the fourth straight time on a trot.
Monetary policy committee participants in the US were of the view that further tightening of monetary policy would be appropriate if incoming information indicated that progress toward the US Federal Reserve's inflation objective was "insufficient", the minutes of the latest review meeting r
Federal Reserve Governor Michelle Bowman reiterated her view that she expected the central bank will need to increase the interest funds rate further to bring inflation down to its 2 per cent target.
The monetary policy committee of the Reserve Bank of India (RBI) in its October review meeting kept overall 2023-24 growth and inflation unchanged from their earlier estimates, even as the central bank flagged concerns about high inflation.
The monetary policy committee of the Reserve Bank of India (RBI) in its October review meeting unanimously decided to keep the policy repo rate unchanged at 6.5 per cent, thus maintaining status quo for the fourth straight occasions.
The selling spree continues in Indian stock markets for the third straight session after the US central bank while keeping its interest rate steady in the September meeting, hinted that it may again hike rates going ahead if need be, in its fight against inflation.