There were expectations that United States will increase their rates
With the US Federal Reserve maintaining status quo over rates, Economic Affairs Secretary Shaktikanata Das on Friday said the decision is good for emerging markets like India as it will provide space for policy adjustment.
"The Federal Reserve decision seems good for the emerging markets," he said, adding it provides room for authorities for policy adjustment.
The US Federal Reserve kept its interest rate unchanged and said that the rate hike in the future will be ‘calibrated and cautious’.
"There were expectations that United States will increase their rates. Expectations were based on certain logic.
“But I think that the US Fed has given a clear signal . . . that any adjustment will be very calibrated and cautious," he said.
The government would continue to strengthen its macroeconomic stability and undertake reform measures, Das added.
"We were expecting a modest hike and hence we were prepared for all eventualities.
“It’s not like we got extra time with the Fed maintaining status quo.
"We will now continue to focus on macroeconomic stability and taking measures for reforms", he said.
He expressed hope that India would witness economic growth of over 7.5 per cent in the current fiscal.
During the first quarter ended June 2015, India's gross domestic product grew by 7 per cent.
Asked if the US Fed's decision provide any room for Reserve Bank of India to cut policy rates, Das said RBI will take considered view on monetary policy.
"The government and RBI met regularly.
“We met last week for FSDC meeting and had a long discussion. But as far as the monetary policy is concerned the RBI will take a considered view," he said.
