India's export earnings are expected to remain stable or at the most take a small hit in the wake of the United States Federal Reserve raising interest rates.Experts and exporters alike say this will happen as global demand continues to remain high, thereby cementing the rise of exports. However, at the same time, India continues to attract global investments thereby strengthening the Indian Rupee, which may lead to exports becoming more expensive and thereby less competitive in the global market.Hopes on high demandThe US Federal Reserve on Wednesday raised interest rates by 0.25 per cent, the sixth time since December 2015. Even as fourth quarter GDP growth in the US was revised downwards to 2.5 per cent, US policymakers now believe that economic growth will remain steady in 2018. As a result, the Fed has raised its forecast for 2018 GDP growth from the earlier 2.5 percent to 2.7 percent and increased the 2019 expectation from 2.1 percent to 2.4 percent.The World Trade ...
Evans said he could still support 'three or even four' rate increases in 2018 if inflation and other data suggested that would be needed
Fed officials expect improvement in the job market to slow
Federal Reserve left its rate outlook for 2018 unchanged even as policymakers projected a short-term acceleration in US economic growth
Investors will pay close attention to how the central bank aims to balance a stimulus-fueled economic boost with the ongoing weak inflation
Most officials regard tightening labour market conditions to eventually drive up prices
The US central bank has raised rates twice this year and currently forecasts another hike in its benchmark lending rate from its current target range of 1.00% to 1.25% by the end of 2017
The fact that the Fed stood its ground seemed to indicate that the Fed was in a 'hawkish' mode
The Federal Reserve's estimates for unemployment rate by end of this year moved down to 4.3%
Federal Reserve raised interest rates by 25 basis points for the second time in three months
The Fed has kept rates at low levels since the financial crisis to stimulate economic activity
The Fed is expected to continue tightening monetary policy this year
Raising the Fed Funds target rate to 0.75-1.00% marks second rate hike in just over three months
Market players believe the rate hike is likely to make the market nervous
The rate increase expected on March 15 will be the second in four months
Fed Chair Janet Yellen said any increased spending by the Trump administration could impact how the Fed adjusts rates going forward