Industry analysts praised the US Federal Reserve’s decision to cut rates by 0.5 percentage points, viewing it as a positive move for the strengthening US economy and stable inflation. Following the rate cut, the US dollar gained strength, putting pressure on gold and other safe-haven commodities.
Sanjeev Agrawal, President of the PHD Chamber of Commerce and Industry (PHDCCI), noted that the US economy is experiencing steady expansion. He stated, “We expect that the cut in the federal reserve rate could lead to a decline in returns on equity and a rise in gold prices.” Agrawal also emphasized the need for the Fed to remain vigilant amid ongoing inflation pressures.
Experts predict that the US rate cut will encourage central banks in other countries to consider similar actions. Madhavi Arora, Chief Economist at Emkay Global Financial Services, stated that the Reserve Bank of India (RBI) is likely to focus on domestic factors, with a potential rate cut by December.
Dhawal Ghanshyam Dhanani, Fund Manager at SAMCO Mutual Fund, pointed out that India often follows the US in interest rate decisions. He added, “There is a high probability that we will follow suit this time.” Meanwhile, Dhiraj Relli, MD and CEO at HDFC Securities, noted that while monetary policies may have limited impact on global markets, geopolitical events and economic slowdowns in regions like China could influence market trends in the coming weeks.
Also Read: Federal Reserve Cuts Interest Rates By Half A Percentage Point For First Time Since 2020
A Cushman & Wakefield report says 88% of Indian manufacturers made investment decisions influenced by…
The NSO has reported a 54.6% rise in the Gross Value of Output from agriculture…
Iranian Foreign Minister Seyed Abbas Araghchi on Saturday called on US president Donald Trump to abandon what he…
Gautam Adani, Chairperson of the Adani Group, arrived in Bhubaneswar and proceeded to Puri to…
Choosing between cold and warm showers can impact your energy, health, and mood. Here’s how…
BJP MP Manoj Tiwari participated in the first day of the Jagannath Rath Yatra in…