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Interest rates in the US continue to rise, but at a slower pace than before. The US central bank, the Fed, raises its key rate by 0.5 percentage points, bringing it to a bandwidth of 4.25 and 4.5 percent.
It is the sixth rate hike this year. Over the past four times, the central bank has raised interest rates by 0.75 percentage point each time, a historically high percentage. That series is now coming to an end.
The Fed raised interest rates so quickly to counter skyrocketing inflation. It was an encouraging 7.1% in the US in November, the lowest in eleven months. Yet many Americans still struggle with high prices: They may spend less at the gas pump, but the price of food, for example, continues to rise.
The European Central Bank is also holding a policy meeting tomorrow and it is expected that there will also be a decision on interest rate hikes. It would be the fourth time this year.
