Fed's QE3 will benefit India in the short term: Rajan

The US Federal Reserve's latest round of monetary stimulus and monetary easing by the European Central Bank will benefit India in the short term, Chief Economic Adviser Raghuram Rajan said on Tuesday.

The Fed began buying $40 billion a month in mortgage-backed securities this month and has pledged to continue the purchases until the labour market has improved substantially. The programme is called QE3 because it is the Fed's third try at quantitative easing, or buying bonds to stimulate the economy.