He said that the status quoted by the US Fed is something contrary to the expectation, but he does not see any big reaction. The market, he said, was anticipating a rise.

"It is basically a non-event. I have said this before, even if the Fed begins to raise (the interest rate), it will be a very gradual rise," Panagariya told reporters on the sidelines of an industry event today.

The US Federal Reserve in its meeting on September 17 decided not to raise interest rates.

"To support continued progress toward maximum employment and price stability, the committee reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate, remains appropriate," the Federal Reserve said in a statement after the meeting of its committee in Washington.

Panagariya said the market reacts naturally, but it has been unlike 2013 when there was a fairly large reaction on a similar expectation from the US Fed.

"I don't think the kind of thing we have actually observed in 2013, remember when there was this, that time no change did happen. There was some perception that some change might happen. And that had generated a fairly large reaction. I don't expect that (this time)," he added.



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