US Fed Rate Hike Sparks Debate Over RBI Policy Outlook

The US Federal Reserve raised the federal funds rate by 25 basis points to a target range of 3.75%-4% following four consecutive meetings of keeping rates unchanged.

The Fed's unanimous decision and quarterly projections indicating scope for another hike this year have intensified debates on whether the Reserve Bank of India will tighten policy.

Analysts hold mixed views, with brokerages like Axis Capital expecting rate hikes in October and December, while others anticipate the central bank will maintain a watchful pause.