CASE FOR HIKE STRENGTHENING: YELLEN ON RATES

Justifications for an interest rate increase in the United States have grown in recent months, US Fed chief Janet Yellen said on Friday.

In an address to an annual gathering of central bankers in Wyoming, Yellen took note of strong job growth, saying gradual increases in the Fed’s benchmark rate in the coming years should be expected.

“In light of the continued solid performance of the labour market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months,” Yellen said. Sure to ripple through equities and commodities markets, Yellen’s words returned a measure of clarity on the intentions of US monetary policymakers.

The BSE Sensex on Friday posted its worst week since early May on Friday, as investors stayed on the sidelines ahead of the speech. The Sensex ended down 0.19% at 27,782.25, posting a fall of 1% for the week.