OUR US Federal Reserve Bank raised interest rates to their highest level in 16 years. In particular, he increased the key interest rate by 0.25 units the basis – it’s about her 10th promotion in 14 months.

These moves sent borrowing costs skyrocketing in the world’s largest economy, causing slowdowns in sectors such as Framewhile they played a part in recent bankruptcies three American banks.

The Fed sent a message that today’s increase this might be her last one for now.

The Federal Reserve began raising interest rates last year when US prices rose at the fastest rate in decades.

The above actions pushed the base rate towards from 5% to 5.25% – practically from scratch in March 2022

Similar measures have been taken by central banks around the world, including the UK and Europe.

Higher interest rates make it more expensive to buy a house, borrow money to expand your business, or make other debts more expensive.

By increasing these spending, officials expect demand to fall and prices to fall.

As the Fed implements this strategy, the rise in prices in the US is slowing down.

In March inflation was 5% – the lowest level in almost two years – although still high enough for the Fed.