The US Federal Reserve on Wednesday announced that it had lifted the policy rate, federal funds rate, by 75 bps to the range of 2.25-2.5%. This decision came in line with the market expectation.
The Federal Reserve said Wednesday the coronavirus pandemic already has caused “tremendous” health and economic hardship, and warned the damage to the US economy will continue along with high unemployment.
Fed Again Cuts Interest Rates 0.25 percentage points, which was widely expected, brings the Fed’s target rate to a range of 1.5% to 1.75%. Less clear is where central bankers go from here amid signs the economy is slowing down.
Federal Reserve officials left interest rates unchanged at their June meeting but opened the door to a cut if President Trump’s trade fight intensified and risks to the American economy increased.
The Reserve Bank of India (RBI) is expected to deliver a 25 bp rate cut amid India’s benign inflation on Thursday afternoon, with the aim of stimulating the nation’s economic growth that slowed to 5.8% yoy in the January-March quarter from 6.6% the previous three months. Lower crude oil prices also boosted the prospects of a cut in interest rates, according to the latest research report from Scotiabank.