INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The US Federal Reserve is all set to announce its decision at the end of its two-day policy review on Thursday, possibly leaving
the funds rate constant at 2-2.5 per cent
Experts expect the Fed to largely maintain its upbeat tone on the economy while it may suggest risks to growth and inflation as balanced
be on the post-meeting statement, said Madhavi Arora, Economist, FX Rates at Edelweiss Securities.
According to Arora, there will be
minimal changes from the upbeat tone in the September policy this time amid strong GDP data, inflation around 2 per cent and a robust labour
market report in recent weeks
raised benchmark interest rate by a quarter percentage point for the third time this year in September
With this, the number of rate hikes since late 2015 stood at eight.
Religare Securities noted that the rate is at the highest level since
October 2008.
But the latest non-farm payrolls data indicate that the Federal Reserve will continue to tighten its monetary policy in coming
months, said Rushabh Maru, Research Analyst at Anand Rathi Shares and Stock Brokers in a note.
Maru sees the rupee trading in 72.50-73.50 a
dollar range in the short term.
Meanwhile, the Fed may flag a possible slowdown in the housing market and a dip in business investment as a
reason to think growth is ebbing, Reuters reported
2017 tax cuts, February 2018 lifting of spending caps)
