Status quo by US Federal Reserve good for India: Economic Affairs Secretary Shaktikanta Das

NEW DELHI: US Federal Reserve’s decision to hold rates gives more room to emerging markets for policy adjustment, economic affairs secretary Shaktikanta Das has said.

"The Federal Reserve decision seems good for the emerging markets," he said, adding it provides room for authorities for policy adjustment.

The US Fed kept interest rate unchanged on Thursday 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.

He said the government would continue to strengthen its macroeconomic stability and undertake reform measures and exuded confidence that India is well poised to attain economic growth of over 7.5% in the current fiscal. India’s GDP grew by 7 per cent in the first quarter ending June 2015..

"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.

Asked if the US Fed's decision provided room for RBI 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.