US Federal Reserve on expected lines raised Fed Funds rates by 25bps to 5.25-5.5% range, highest levels seen since 2001. This marks the 11th hike in the last 12 policy meetings. Another hike is on the cards and we will have to wait till the September policy meet before which the Fed will see how incoming data on inflation and labour market pans out. With crude prices inching up again due to supply cuts and expected optimism in China's recovery, it will be important to track the inflation prints for July and August. Indication is that the interest rates will remain higher for longer. It will be interesting to see the stance that RBI takes in the policy meet in August. Inflation print in June came in higher than street estimates. Increasing vegetable prices due to erratic monsoon and soaring crude will add to inflationary pressures going forward.