CNBC's Inside India newsletter: What happens when the Fed cuts rates?

The Federal Reserve has cut interest rates twice this year, in an effort to boost economic growth.

But what does that mean for India?

The Reserve Bank of India (RBI) has not cut rates in response to the Fed's moves. This is because the RBI is focused on keeping inflation under control.

However, the Fed's rate cuts are likely to have a positive impact on the Indian economy.

• Lower interest rates make it cheaper for businesses to borrow money and invest.
• This can lead to increased economic growth.
• Lower interest rates can also make it cheaper for consumers to borrow money and spend.
• This can lead to increased consumer spending, which can also boost economic growth.

However, there are also some risks to consider.

• Lower interest rates can lead to inflation if the economy grows too quickly.
• Lower interest rates can also make it more difficult for savers to earn a return on their money.

Overall, the impact of the Fed's rate cuts on the Indian economy is likely to be positive. However, there are some risks to consider.