Fed Rate Cuts and its effect on India’s Interest rates

The US Federal Reserve cut a key interest rate for the first time in four years, seeking with an aggressive half-point move to prevent a steep housing slump and turbulent financial markets from triggering a recession in US. Its a known fact that any change in Fed rate has lot of implications on G-7 Markets including India.

I sincerely hope that the Interest rates in general and home loans in particular should come down. There is lot of reasons to believe this would happen with festival season, year closing, fed rate cut being some factors. Home loan rates is likely to remain stable and one can only expect it to go down in another quarter.

One negative effects of fed rate may be more rupee appreciation. So best things to do is keep things ready at India (I mean send as much $$ as you can now) and go for home loans when rates come down. Needless to say Stock markets would be on fire tommorow :)

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