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The Economic Times

Economy / The Economic Times

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Let exchange rate act as shock absorber: IMF on Fed hike impact on India

The International Monetary Fund has noted the potential impact of the US Federal Reserve's interest rate hikes on global markets. This situation could create challenges for emerging economies through capital flows and financing conditions. The IMF encourages India to let its exchange rate absorb shocks while focusing on maintaining domestic price stability. India's current strong economic position may help it navigate this environment effectively.

4 Oct 2026 5:59 pm