The US Fed's decision to hold rates is on expected lines but there are uncertainties going forward because a majority of Federal Open Market Committee members are expecting another hike, analysts said on Thursday.

"The decision of the US Fed to keep rates unchanged is in line with market expectations. But, it presented a split house in terms of future course with 12 officials expecting one more hike and seven officials expecting no hike," TIW Capital's Chief Executive Mohit Ralhan said.

Ralhan said there remains a bit of uncertainty, but it is quite likely that rate reversals will take more time than previously expected and it may not begin until September 2024.

Domestic brokerage Kotak Securities said the more likely policy tightening measures "may keep markets jittery in the near term".

Fintech platform Appreciate's founder and Chief Executive Subho Moulik said as the US headline inflation as well as most US inflation component measures decline, the Fed has decided to pause rate hikes for the moment.

"If the macroeconomic outloook continues to hold steady, rate cuts in 2024 (a US election year) could point to significant upside for US markets overall in the next 6-12 months barring any large downside surprises arising from Ukraine or China," Moulik added.

Stoxbox's head of research Manish Chowdhury said the Federal Reserve has kept the door ajar for one more rate hike before the end of the year.

"…our sense is that the Fed is in a conundrum over managing inflation in a rising energy environment without leaving a scar of recession on the world's largest economy," he said.

From a commodity markets perspective, Abans Holdings' Chief Executive Chintan Mehta said gold has corrected in the wake of the "hawkish" commentary, which strengthened the dollar and treasury yields and put pressure on the precious metal.

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