From 12 thousand kilometers away, the pockets of Indians will be attacked again, how do you know? , Fed chief says interest rates likely to go higher, RBI may increase borrowing ami

The news is scary. The blueprint for this attack is being developed. On March 22, an announcement would be made from the Eccles Building in Washington DC and the Indians would be in trouble. Yes, the Eccles building is the same one from where the US central bank chief announces policy rates. Fed Chairman Jerome Powell has made it clear that interest rates will rise again. It is not yet known how much the policy rate may increase. If it continues to rise, the Reserve Bank of India will also be forced to raise the repo rate. Because the inflation figures have not decreased in India either. In such a situation, it can be assumed that the burden of EMI on the people of the country may increase again.

It is certain that the Fed will raise policy rates

It is certain that the Fed will raise policy rates. Fed Chairman Jerome Powell indicated that. It is yet to be revealed how much the Fed will raise the policy rate, but it is expected that the Fed may increase this time by 50 basis points. This will be the second time in a row that the Fed will hike by 50 basis points. Prior to this, the Fed continued to hike by 75 basis points.

In its December estimate, officials pegged the terminal rate at 5.1 percent. Current market prices rose between 5.5 and 5.75 percent after Powell’s comments, according to CME Group data.

Something like that came in the Fed Chairman’s speech

Federal Reserve Chairman Jerome Powell warned Tuesday that interest rates could be higher than central bank policymakers expect. Citing data from earlier this year that showed inflation had rebounded from a slowdown seen in late 2022, the central bank chief warned of tighter monetary policy to slow the growing economy. Then the stock market fell. The Nasdaq fell 0.75 percent and the Dow Jones fell more than one percent. The S&P 500 also fell more than one percent.

It will affect the pockets of Indians

After this decision, there will be a clear impact in the pockets of Indians as well. After the Fed, the Reserve Bank of India may also raise interest rates, which could be by 25 to 35 basis points. The Central Bank of India has already increased the repo rate by 2.50 percent from May 2022 to February 2023. Due to which the policy rate stands at 6.50 percent. On February 8, the RBI raised the MPC repo rate by 25 basis points. If the Fed hikes by 50 to 75 basis points, the RBI may also raise the policy rate by 25 to 35 basis points.