Here are the clues that RBI, others can draw from the US Fed action

The Fed action and tone of statements will continue to be read closely by the RBI in the coming months

The rate hike effected by the US Federal Reserve on Wednesday was more or less expected, and it will be so every time the Federal Open Market Committee (FOMC) meets in 2018. It is now well known that inflation is to be in the region of 2 per cent with growth picking up and unemployment coming down. The important message to be taken from the statement was the forward-looking one on future rate cuts. With the indication now of four rate hikes for the year, and with two having been announced so far, we expect the rate to now end