Chennai Stock：As the Fed unexpectedly cuts interest rates 50 basis points, the task of the President of India's Governor of India was canceled

With the Federal Reserve (FED) interest rate cuts 50 basis points, shocking the global financial market, as Global Central Bank governor enters the loosening cycle of monetary policy, the Central Bank President Shaktikanta DAS is now facing a series of new challengesEssence

At present, the Fed's interest rate has dropped to between 4.75%and 5%, while the repurchase interest rate of the Indian central bank is 6.5%.

As the inflation began to slow, the European Central Bank has twice reduced short -term interest rates this year, and the 25 basis points were reduced in September.The Bank of Canada has recently reduced the benchmark interest rate by 25 basis points, implying that it may be further reduced in the near future.Bank of England also reduces interest rates.Other global central bank governors are likely to join the interest rate cut cycle.

This marks the first interest rate cut for the Federal Reserve since 2020, making it one of the most watched global currency actions.In view of the impact of US monetary policy on the global financial system, especially the impact of emerging markets such as India, the Fed's further interest rate cut may bring new challenges to the monetary policy of Indian reserve banks.

One of the main concerns of Das is the Fed's future guidelines, which indicates that 200 basis points will be reduced in the near future.The Federal Reserve Commission is expected to cut interest rates by 50 basis points by the end of this year.The predictions of members of the committee also show that they are expected to reduce interest rates 100 basis points by the end of 2025, and 50 basis points will be reduced in 2026.In general, this means that the Fed plans to reduce interest rates by about 200 basis points in the next two years, and today's interest rate cut is 50 basis points.Chennai Stock

The trend of global interest rates may make the Central Bank of India focus on the complexity of controlling inflation. The goal of the Indian Bank of India is to control the inflation to 4.5%in fiscal 2024-25.

Indian Reserve Bank's Monetary Policy Committee is committed to controlling inflation rates within 4%, with an amplitude between positive and negative 2%.This means that the central bank must respond to external pressure and maintain its anti -inflation strategy.

So far, the inflation trajectory is still within the forecast of the Indian central bank. In August, the CPI or retail inflation rate was 3.6%.Considering that the inflation rate of 2024-25 is expected to be 4.5%, Indian reserves are powerless in terms of interest rate cuts.Kolkata Wealth Management

In the past, the Federal Reserve did not hesitate to significantly reduce interest rates, even reduced to nearly zero, and adopted a quantitative easing policy to stimulate the economy.From 2007 to 2008, the Federal Reserve reduced its short -term interest rate to zero, supporting the economy after the global financial crisis in 2008.Bangalore Stock Exchange

For the Indian Bank of India, the global interest rate loose cycle has also brought challenges.If the global interest rate cut cycle accelerates, as investors seek higher returns in emerging markets, India may experience more capital inflows.Although this US dollar inflow is generally beneficial to the stock market and bond market, it may complicate currency management and may cause inflation pressure by expanding domestic currency supply.

In addition, the appreciation of possible management of the rupees may put pressure on India's exports, causing India's reserve banks to further complicate the balance between growth and control of inflation.

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