International Monetary Fund (IMF) said that the challenge for the emerging economies would come from the policy rate increase from the United States Federal Reserve and and the emerging economies must prepare for US Federal policy tightening.
High inflation and COVID-19 new variant Omicron have made the outlook for emerging markets like India more uncertain, stated IMF.
Faster Fed rate increases could rattle financial markets and tighten financial conditions globally, which could come with a slowing of US demand, stated IMF in a blog.
The policy rates increase by the US Federal Reserve would put pressure on the RBI to hike rates.
(With inputs from ANI)
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