Reserve Bank of India Governor Raghuram Rajan on Saturday:

  • There would be some volatility in emerging markets once the U.S. Federal Reserve decided to raise interest rates, BUT…
  • “If the Fed starts raising interest rates, as I presume they will … it will be good for the rest of the world. The rest of the world will benefit from U.S. growth”
  • “It could create some volatility for the emerging markets … my hope is that after the initial volatility there will be differentiation, and the financial investors would try to see where there is some macro-stability … and I hope India comes out in (that) group”

Rajan makes a lot of sense.