Sept 18-A Critical Date

The entire economies of US and the world are eagerly awaiting the Fed decision on interest rate on 18th Sept. What does it mean for India?

A lowering of interest rates may only mean a flight of capital towards equity, lowering of financial costs, increase in venture funds, cheaper funds for housing, and some sort of solace for the housing sub prime adventurists.

The market is expecting a .5% cut in prime lending rates. If that happens, other things being equal, it may be presumed that our economic bouyancy will continue. A higher interest rate cut will be expected to boost the US economy, which wil indirectly churn up the world economy positively for some time at least.