Buying time
The US Federal Reserve’s decision to hold interest rates steady is less a mark of confidence than an admission of constraint.
The US Federal Reserve’s decision to hold interest rates steady is less a mark of confidence than an admission of constraint.
The US Federal Reserve, in its latest policy meeting held on January 27-28, decided to keep its key benchmark interest rates unchanged at 3.5 to 3.75 per cent, citing low job gains, signs of stabilisation in the labour market, and inflation that remains somewhat elevated.
The latest interest rate cut by the US Federal Reserve should have been a routine step in a predictable easing cycle.
The price of 10 grams of 24-carat gold closed the week at Rs 1,20,100 down from Rs 1,20,770 last week, according to data published by the India Bullion and Jewellers Association (IBJA).
Gold and silver prices opened sharply lower on Thursday on the Multi Commodity Exchange (MCX) after the US Federal Reserve announced a 25-basis points rate cut.
The annual Jackson Hole gathering of central bankers has often served as a stage for policy signals with global reverberations.
As the US Federal Reserve paused the rate cut cycle, the Reserve Bank of India (RBI) has started with liquidity easing and the rationale for 25bps rate cut in February is compelling, industry watchers said on Thursday.
The domestic benchmark indices opened flat on Thursday as the US Federal Reserve meeting voted unanimously to pause the rate cut cycle, which started last September and has delivered 100 bps of cut to date.
This is a significant improvement as it comes after significant outflows in the preceding months.
Foreign investors have staged a strong comeback to Indian equities with a net investment of Rs 24,454 crore in the first week of December.
