ilmscore | Prediction Details
"if the interest rates in USA cut typically India will also follow other countries will also follow that is that there is a concept called as interest rate parity like you might have heard about this I'm not sure purchase power parity interest rate par uh interest rate parity uh and uh typically there is a correlation between interest rates and currencies also okay so to maintain the currency exchange rates This is the most simplified version that I can give. To maintain the uh exchange rates between two currencies, interest rates are typically adjusted."
By CA Rachana Phadke Ranade | September 18, 2025 | Correct
From video
Fed Rate Cut | Stocks in Focus | CA Rachana Ranade 00:47:16 - 00:47:58
Interpreted Prediction
When US interest rates are cut, other countries, including India, tend to follow suit to maintain currency exchange rate parity.
AI Evaluation Notes
The US Federal Reserve cut interest rates in March 2024, and kept them steady through 2025. The Reserve Bank of India (RBI) followed with some rate cuts but not always directly after the US Fed decisions, indicating a tendency to follow but with its own considerations.

Prediction Details

Topic
Indian Interest Rates

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