U.S. interest rates are now at their highest level since the global financial crisis, as the U.S. central bank hiked rates again in an effort to reduce inflation.
The Federal Reserve, or Fed for short, mandated a 0.50 percentage point rate hike.
The widely expected rise would mean higher borrowing costs for U.S. mortgage holders and those paying off credit card debt.
After hike, U.S. rates held at 4.25% to 4.5%, from 3.75% to 4% last increase November.
In the US, interest rates are a range rather than a single percentage like in the UK because the Fed is not allowed to set a specific number. Instead, the target rate is set as a guideline for banks to follow.
up less than four previous excursions Or 0.75 percentage point, indicating that the Fed is slowing the pace of the fight against inflation.
It has embarked on a program of rate hikes to bring inflation down to its 2% target.
Pace of rate hikes slows as inflation picks up in world’s largest economy seems to be slowing downPrices rose 7.1% in the year to November, down from a 40-year high of 9.1% in June, the Labor Department said Tuesday.
similar decision interest rate will be given by bank of england Thursday. The Bank of England is also expected to raise the cost of debt to curb economic activity and curb inflation.
The United Nations Conference on Trade and Development has asked central banks not to raise interest rates.
It warned that monetary regulators tightening policy and raising interest rates could lead to a recession deeper than that seen after the global financial crisis.