India well prepared to deal with Fed hike: Finance Ministry

New Delhi, Dec.17 (ANI): The Finance Ministry on Thursday said India is well prepared to deal with the impact of the US Federal Reserve interest rate hike, as it was along expected lines.

“India is well prepared with regard to external vulnerability, if at all it arrives at a future date. US Fed hikes is on expected lines. Infact both 25 basis points and the accommodative outlook which they have spelt out, both of them are on expected lines. Accommodative outlook is good for emerging economies,” Economic Affairs Secretary Shaktikanta Das told media here.

“They are also talking of gradualism. As of now 25 basis points they have announced, about the remaining part which they would do in 2016 is something which we have to wait and see. I am sure the US Federal Reserve would also be watchful of the emerging market situation, their job figures and growth figures but what is good that, the US Fed chief have also talked about the sustained nature of US revival, which I think is a good news for countries like India which exports a lot of IT and software products and services to a markets like U.S.,” Das added.

The U.S. Federal Reserve has raised interest rates by 0.25 percent, its first increase in nine years.

This was announced on Wednesday after a two-day policy meeting between officials with stocks rallying in early trading in Europe and the US.

The rate, which stands at 0.5 percent after the increase, was kept the same through out the global credit crunch so that financial institutions could borrow cheaply and in turn allow them to lend at lower rates.(ANI)

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