India is “very well cushioned” to absorb the impact of the US Federal rate hike and the currency market will stabilise after witnessing the initial ripples – Finance Ministry. India will have to “balance out” its interest rate with that prevailing in the US to control the flight of capital so that there is no volatility in the rupee-dollar exchange rate. Observing that Fed rate hike has ended the uncertainty surrounding the major global event, Economic Affairs Secretary Shaktikanta Das said the Indian markets have already factored in the impact of the increase. With foreign exchange reserves of USD 360 billion and domestic consumption led demand, India is considered to be better prepared than other developing markets to weather the Fed rate hike impact.
India very well cushioned to bear Fed rate hike impact: CEA
Date posted: Friday 16 December 2016
Tags: Featured, Indian Economy