Fed hike, high crude could push RBI towards tighter policy: Experts
New Delhi, Sept. 17 -- The US Federal Reserve's 25-basis-point rate hike, coupled with crude oil prices above USD 100 a barrel and persistent inflation, could put pressure on the Reserve Bank of India to tighten monetary policy, even as the timing of any domestic rate increase remains uncertain, market experts said.
The US Federal Open Market Committee (FOMC) raised the federal funds target range by 25 basis points to 3.75-4 per cent, its first rate increase since 2023. The Fed said inflation remained elevated, while economic activity was expanding at a solid pace, supported by resilient domestic spending, productivity growth and robust capital investment.
Deepak Agrawal, CIO-Debt & Head Products, Kotak Mutual Fund, said the Fed's decis...
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