The world economy is preparing for a fifth increase US interest rates This Wednesday, despite growing recession fears and concerns that monetary tightening will slow growth.
And to curb price fluctuations, it raises Federal Reserve (central bank) Since last spring, the daily interest rates affecting all other loans have gone from zero to between 2.25% and 2.5%.
Should arrive Benefit At 3.8% next year, according to the Central Bank’s latest average forecast, issued last June.
The new increase will come in the wake of the 4 increases approved by the bank this year, in light of the rising cost of living. What are these increases in dates and proportions?
1
March 16The US central bank has decided to raise the interest rate by a quarter percent, the first in 3 years.
2
May 4th Last year, in the largest increase of the past 22 years, as widely expected, the central bank raised the overnight funds benchmark rate by half a percentage point (50 basis points).
In a unanimous decision, the bank set the target range for the federal funds rate between 0.75% and 1%, the highest point since the outbreak of the Corona pandemic two years ago.
3
June 15The central bank passed its largest rate hike since 1994, at 75 basis points.
This step was seen as an escalation of the Federal Reserve’s battle to fight the worst inflation in 40 years by raising the benchmark short-term interest rate by half a percentage point, a move that indicates more significant increases in interest rates in future.
4
July 27 Last year, the Federal Reserve decided to raise interest rates by 75 basis points (0.75%) for the second consecutive time, to reach between 2.25% and 2.5%, as part of the its rigorous political approach to coping with inflation rates that have reached their limit. highest levels for over 40 years.
Expectations of the fifth increase between 0.75% and 1%
Markets are expecting US interest rates to rise by 75 basis points this week with a roughly 20% chance of a 100 basis point hike at the conclusion of the Fed meeting following a sudden rise in the price index US consumption for the month of August.
Prior to its policy of raising rates again in 2022, the last time the Federal Reserve raised interest rates was in December 2018.
The central bank had reduced the interest rate to zero in March 2020 to support the economy, after the Corona pandemic caused widespread disruption in business, before the economy was exposed to a wave of price hikes in 2021 and inflation peaked in 40 years.
Inflation in the United States increased by 9.1% year-on-year last June, surpassing estimates of 8.8%, the fastest rate of increase since December 1981.
On Saturday, an economic analysis predicted that the US central bank would continue its monetary tightening policy over the next period and raise interest rates by 75 basis points on September 21 and by 50 basis points in both November and December. point increase in early 2023.
And the National Bank of Qatar expected, in its weekly report, that the US Federal Reserve would temporarily stop raising interest rates, so that the final interest rate would hover between 4.25% and 4.5%.
–
