Quote on the latest US FED announcement today by Deepak Agrawal, CIO- Debt & Head Products, Kotak Mutual Fund
Below the Quote on the latest US FED announcement today by Deepak Agrawal, CIO- Debt & Head Products, Kotak Mutual Fund
“Given the elevated inflation, the FOMC hikes rates by 25 bps and guided for one more hike in CY 2026. This will help in bringing down inflation to 2% goal and restore the FOMC credibility. In FOMC assessment economic activity is expanding at solid pace driven by productivity gains, robust capital investment and strong job gains. Based on Fed Dot plot, Fed is likely to stay on hold through 2027 with likely easing in 2028. Given FOMC commitment to bring down the inflation to 2%, shall support the long term bond yields. Rising crude and inflation along with increasing global rates may also guide the India MPC to raise rates by 50 bps.”
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