Arab Today, arab today india to stay vigilant to ensure financial stability
Last Updated : GMT 05:43:04
Arab Today, arab today
Arab Today, arab today

India to stay vigilant to ensure financial stability

Arab Today, arab today

Arab Today, arab today India to stay vigilant to ensure financial stability

New Delhi - AFP

India said on Thursday it would take whatever steps necessary to ensure stability in its financial markets after the US Federal Reserve again cut its monetary stimulus. The finance ministry said the government and the Reserve Bank of India were remaining vigilant to the possible impact on the markets of the US Federal Reserve's decision to further taper its stimulus programme. The ministry said India's economy was prepared for the taper, pointing to India's boosted foreign exchange reserves which stand at $295 billion and robust foreign investment inflows, among other factors. "However, both the Government and the Reserve Bank of India will continue to remain vigilant and will take whatever steps are necessary to ensure that there is stability in the financial markets," the ministry said in a statement. This decision was expected and should not in any way surprise or affect the Indian markets," it said. The US Federal Reserve stayed the course on tapering its stimulus for the US economy on Wednesday, reducing asset purchases by $10 billion for the second month in a row. The Fed said the US economy was growing firmly enough to further trim the stimulus, which will fall to $65 billion a month from February, spelling a steady tightening of global financial conditions. Asian markets slumped Thursday, extending a global rout on renewed fears of a capital flight from emerging economies -- including from India -- as dealers look for safer investments back home. Shares on the Bombay Stock Exchange were down 1.08 percent to 20,424.65 points on Thursday on the news. Indian shares have already seen a bit of a roil in the past few sessions on worries that US Fed tightening its money tap could hit growth in emerging market economies amid a slowdown in China. "This (fall) is a knee jerk reaction. We need to wait for a week or two to see how much we (Indian financial markets) have digested the Fed tapering," said Arun Singh, senior economist at the research firm Dun and Bradstreet. The currency fell to as low as 62.90 rupees to the dollar in early trade on Thursday before recovering to 62.75 rupees, from Monday's more than two-month low of 63.32 "What India needs now are concrete steps from the government and the central bank to ensure currency stability and growth revival. Foreign investors need to be assured about returns or the capital could flow out," Singh said. The Reserve Bank of India (RBI) this week unexpectedly raised its key interest rates by 25 basis points to tame inflation even as the economy faces low growth.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today india to stay vigilant to ensure financial stability Arab Today, arab today india to stay vigilant to ensure financial stability

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today india to stay vigilant to ensure financial stability Arab Today, arab today india to stay vigilant to ensure financial stability

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse

GMT 16:25 2017 Sunday ,04 June

“Suhoor” is basic meal for fasting

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 23:13 2017 Sunday ,18 June

New ransomware virus attacking mobiles in Oman
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday