RBI governor cautions US Fed against raising rates

Washington, Aug 29: India's apex bank has cautioned its US counterpart on going ahead with a rate hike, especially at a time when world economic growth is stalling which has led to massive volatility in currency, equity and commodity markets. Caution regarding a hike during the upcoming US Federal Reserves (US Fed) rate decision was conveyed by the Reserve Bank of India (RBI) Governor Raghuram Rajan in an interview with CNBC at Jackson Hole, Wyoming. "My position over time has been don't do it when the world is in turmoil. It's a long anticipated event, it has to happen sometime - everybody knows it has to happen - but pick your time," Rajan said during the interview aired on the channel's "Closing Bell" show. Rajan is in the US to attend the global central bank chiefs' meet at Jackson Hole, a ski resort located along the border of Wyoming and Idaho for the Federal Reserves' annual retreat. Rajan's comments come at a time when investors are spooked by a slowdown in China, massive devaluation in emerging markets' currencies and growing chances of the US Fed going in for a rate hike. The US Fed is expected to announce its decision to hike interest rates after a decade or so of easy monetary regime with interest rates pegged at near zero levels during its policy meet scheduled on September 16-17. The Indian markets are worried that the recent positive data points from the US has heightened chances of a US rate hike in September.