Interest rate: Awasthi welcomes Fed decision
IFFCO MD Dr U S Awasthi has welcomed the US Federal Reserve’s decision not to hike interest rates for the moment- a matter that has even divided nobel laureates.
Raising interest would have meant flight of fund from the countries like India as investors in the hope of making good return would have chosen USA as destination for parking money.
Buoyed by the Fed’s decision Awasthi tweeted “ Keeping interest rate on hold by #Federal Reserve Chairperson @yellenfed is positive for world economy specially emerging like #India.”
It is the close monitoring of fluctuations in the rates of dollar versus Rupee that decides IFFCO’s margin of gain. When to import is crucial and IFFCO MD is said to keep personal watch on the fluctuations of international currencies.
Soon after the crisis of 2008 the Fed decided to curb the recession by bring the interest rate to near zero thereby encouraging economic activities on cheap loans.
The news of the Fed maintaining status quo made BSE to close on Friday at 26,218 points – at the highest level since August 31. The Nifty of the National Stock Exchange (NSE) had also breached the 8,000-point mark.
Washington Post says the Federal Reserve has put a damper on the longstanding expectations about a spike in interest rates as it feels the U.S. economy faces new threats from abroad and needs continued support for growth.
The international uncertainties have influenced the Fed’s two-day meeting in Washington deciding not to raise the interest rates. However the bank officials had fresh doubts that the economy would be ready to stand on its own anytime soon.
The Fed will have two more meetings this year and analysts predict a rate hike by the end of the year.
