The US Federal Reserve on Thursday decided against raising the interest rates offering markets around the world some relief. The world’s largest central bank has not raised the interest rates for over a decade. The markets around the world were expecting the Fed to increase the rates and remained volatile for days. However, the decision to not increase the rates has come as a surprise. Some analysts attribute this to China’s decision to devalue Yuan which increased the pressure on the Fed. Markets have been watching if the Fed goes ahead with the first increase in interest rates in nine years and its impact on emerging markets. (Also Read: RBI to cut rates irrespective of US Federal Reserve moves)
Ahead of US Federal Reserve’s impending interest rate hike, the government today expressed confidence of weathering its impact with “multiple layers of defence” and RBI’s preparedness to deal with the situation. Talking about the Fed Reserves, Finance Minister Arun Jaitley at ab event said, “In a situation where there is turmoil almost by the day as far as global markets are concerned, we are trying to make the fundamentals of our own economy strong so that our ability to resist these changes can substantially improve,”
Canadian stocks fluctuated after a two-day rally as investors awaited decision from the US Federal Reserve. Canadian equities swung between gains and losses as a decline in financial services stocks and materials producers offset gains in industrial shares. (With inputs from PTI)
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