New Delhi, Sept. 18 -- The US Federal Reserve has joined other major developed-market central banks-the European Central Bank (ECB) and Bank of Japan (BoJ)-in a monetary-policy tightening cycle. The Fed raised interest rates by 25 basis points (bps), its first hike since 2023, and signalled that it may not be the last this year.

Steve Englander, global head of G10 FX research and North America macro strategy at Standard Chartered, expects one more rate hike by the Federal Reserve at its December policy meeting, while acknowledging the risk of more hikes than in his base case.

The Reserve Bank of India (RBI) could enter the club with a 50-bps repo-rate increase, split equally between its October and December meetings. With artificial int...