U.S. Federal Reserve Rate Hike Good for India: Official
BENGALURU: The U.S. Federal Reserve’s decision to hike interest rate by 25 basis points is good news for Indian exports, Economic Affairs Secretary Shaktikanta Das said on Wednesday.
“The U.S. Fed rate hike and reference to gradualism are on expected lines. India (is) well prepared. The US Fed confidence on recovery is good news for our exports, especially from IT sector,” Das tweeted.
For the first time in nearly a decade, the U.S. Federal Reserve raised its key interest rate from a range of 0 percent to 0.25 percent to a range of 0.25 percent to 0.5 percent.
The widely expected rate hike, though small, is seen as a sign of how much the U.S. economy has healed since the 2007-08 financial crisis.
The central bank believes the US economy was strong now and no longer needed crutches.
The announcement came at the conclusion of the crucial two-day meeting of the policy making federal open market committee’s (FOMC).
“End of uncertainty and accommodative outlook for future will help policy makers in emerging economies,” Das added.