Politics

US makes biggest interest rate rise in almost 30 years

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Posted: 16/06/22 - 11:05
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The US central bank has announced its biggest interest rate rise in nearly 30 years as it ramps up its fight to rein in soaring consumer prices.

The Federal Reserve said it would increase its key interest rate by three quarters of a percentage point to a range of 1.5% to 1.75%.

The rise, the third since March, comes after inflation in the US surged unexpectedly last month.

More hikes are expected, adding to the uncertainty facing the economy.

Forecasts released after the meeting showed officials expect the rate the Fed charges banks to borrow could reach 3.4% by the end of the year, the moves rippling out to the public in the form of higher borrowing costs for mortgages, credit cards and other loans.

As central banks around the world take similar steps, it marks a massive change for the global economy, where businesses and households have enjoyed years of low borrowing costs.

I Call True: I understand WHY they do this to combat inflation but it always feels really unjust to punish us even more when things are so tight as it is.

I expect the UK to follow suit sooner rather than later

Milka
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4 Comments
15 days
3 upvotes
Already happened in the UK although I have zero idea why. People aren't spending more on luxury goods because they have more money, they are spending more on essentials due to the astronomical price increases in energy, food and petrol prices.

And these rate rises will only benefit the already wealthy and not those struggling to pay back loans and mortgages.
15 days
3 upvotes
almost inevitable the UK will follow.
+ 1 Replies
16 days
3 upvotes
Ouch that is a big old hike to have to endure on top of all the other costs of living going up