IMF urges India to let its exchange rate absorb shocks from Fed rate hikes

A PTI report published by The Economic Times says an IMF spokesperson noted that Fed rate hikes have historically pressured emerging markets through capital flows, financing conditions and exchange-rate movements. The spokesperson urged India to let its exchange rate absorb shocks while keeping monetary policy focused on domestic price stability. The impact on India, the spokesperson said, would depend partly on the pace of further tightening and domestic economic conditions.