Economic Affairs Secretary Shaktikanta Das has said that Indian markets are well placed to absorb the 0.25 per cent interest rate increase by the US Fed last night. In a tweet, he said gradual approach in future increases augurs well for emerging markets.<br/><br/>As popularly expected, the Federal Reserve raised its benchmark interest rate for the second time in three months and forecast two additional hikes this year. The Fed's key short-term rate is up by a quarter-point to a still-low range of 0.75 per cent to 1 per cent.<br/><br/>Chief Economic Advisor Arvind Subramanian echoed the sentiments and said, US Fed rate hike was very much anticipated. <br/><br/>He said, since it is a little more dovish than expected, there should be very little impact on the rupee and capital outflows. <br/><br/>Mr Subramanian said, there should be very little volatility in Indian markets. There's been pressure on the rupee to strengthen and that might continue to some extent, he explained. <br/><br/>Mr Subramanian said, three rate hikes are already factored in and India is well-cushioned to absorb any future rate hike.

Economic Affairs Secretary Shaktikanta Das has said that Indian markets are well placed to absorb the 0.25 per cent interest rate increase by the US Fed last night. In a tweet, he said gradual approach in future increases augurs well for emerging markets.<br/><br/>As popularly expected, the Federal Reserve raised its benchmark interest rate for the second time in three months and forecast two additional hikes this year. The Fed's key short-term rate is up by a quarter-point to a still-low range of 0.75 per cent to 1 per cent.

Economic Affairs Secretary Shaktikanta Das has said that Indian markets are well placed to absorb 0.25 per cent US Fed rate hike. He said, gradual approach in future increases augurs well for emerging markets.