Mumbai, Sept. 18 -- The US Federal Reserve on Wednesday cut its benchmark interest rate by 25 basis points (bps), the first such reduction since December. Fed Chair Jerome Powell has hinted that more easing is likely in October and December.

This move followed months of pressure from US President Donald Trump for lower rates. In August, Powell had already signalled that rate cuts were coming during his speech at the Jackson Hole Symposium.

The market reaction in India has been measured. On Thursday, the Nifty 50 was up 0.36% (or 91.55 points) at 25,421.80, while the Sensex gained 0.41% (or 342.44 points) to reach 83,036.15.

Mint examines the implications of the Fed decision for the Indian debt markets and the upcoming monetary policy m...