Fears that the US Federal Reserve may raise interest rates as early as September triggered a flight to safety, rattling markets from New York to Tokyo
Mumbai: India’s benchmark stock indices fell the most in two-and-a-half months on Monday, in line with a meltdown in world equities, as fears that the US Federal Reserve may raise rates as early as September triggered a flight to safety, rattling markets from New York to Tokyo. Worries that the Fed may hike rates at its meeting that begins on 21 September increased after Boston Fed president Eric Rosengren, known to be a dovish policy maker, turned hawkish and said on Friday that the US central bank faced increasing risk if it waited too long to raise interest rates.
The odds of a September rate hike jumped to 30% from 24% before his comments, Bloomberg data showed.
Investors were also unnerved by speculation that global central banks were running out on fresh stimulus options.
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