There is a strong possibility that the RBI will follow the Fed s lead on rate cuts. The majority view is that the RBI will not cut rates ahead of the Fed because that could put pressure on rupee
The decision left the target range for the benchmark federal funds rate unchanged at 5.25% to 5.5%, the highest since 2001, as part of a strategy to slow the pace of rate increases as the central bank nears the end of its tightening campaign. The S&P 500 index and Treasuries extended their rally while the dollar slipped after the announcement.