MARKETS LIVE: Indices to eye US Fed policy decision today

Catch all live market action here

SI Reporter  |  New Delhi  Last Updated at June 13, 2018 09:28 IST

US FED POLICY PREVIEW US Fed likely to hike rates by 25 bps this week, say analysts US Federal Reserve (US Fed) is likely to stay on course and hike interest rates by 25 basis points (bps) in its upcoming meeting on June 12 & 13. The possible hike in interest rates comes in the backdrop of elevated crude oil prices, global trade war fears and a firm dollar.   Most analysts expect the US central bank to hike rates at least twice this year – in June and in September, and follow it up with a couple of more hikes in calendar year 2019 (CY19). The Federal Reserve raised its policy interest rate last in march 2018, and noted economic growth was strengthening READ MORE File photo of US Federal Reserve. Photo: Shutterstock COMMENT ON IIP, CPI Aditi Nayar, Principal Economist at ICRA The uptick in the headline and the core CPI inflation in May 2018 is in line with our forecasts, reflecting an unfavourable base effect for food prices and higher inflation for transport and communication and fuel and light, mirroring the hardening of crude oil prices. With a plethora of data expected prior to the next MPC review, it may be premature to pencil in an immediate rate hike at this stage for the August 2018 policy review. However, a rate hike in Q3 FY2019 can’t be ruled out, if the various inflation risks materialise COMMENT ON ECONOMIC DATA Dr. Devendra Kumar Pant, Chief Economist, India Ratings and Research Although 10 days farmers strike in various parts of the country will impact the inflation numbers for the month of June, the strong base effect, some moderation in crude

Read More Here...

Bookmark the permalink.