The central bank hikes interest rates by 0.25 percent

The Federal Reserve raised US interest rates by 0.25 percent. Although an increase was expected, it is lower than in recent times. At the end of last year, the interest rate increased by half a percent.

The previous four times the interest rate was raised by 0.75 percent. According to the US Federal Reserve, things are slowing down now that inflation is easing somewhat. But since it’s still high, interest rates should continue to rise for some time.

Ask for more | Comment | The Central Bank itself does not know

It is not yet clear how many more interest rate hikes are coming. However, the Fed’s central bankers are talking about a ‘continuing increase’. They will continue until interest rates drive the economy down enough to move inflation toward the 2 percent target.

Interest rates in the US now range from 4.5 percent to 4.75 percent. Financial markets now assume a maximum interest rate of 5 percent. That’s roughly in line with expectations the central bank expressed in December, when policymakers said interest rates would rise 5 percent or more this year.