Central Bank of United States has announced the biggest interest rate increase in 30 years in a move to fight the soaring consumer prices.

Key Facts

  • Central bank has decided to increase its key interest rate by three quarters of the percentage point, in the range of 1.5% to 1.75%.
  • Interest rate has been increased for third consecutive time, in the aftermath of inflation in US.
  • Officials expect rates charged by Federal Banks for borrowing could reach 3.4% by the end of 2022.

Inflation in other countries
Consumer prices had jumped by 9% in UK, in April 2022. Bank of England is also likely to announce its fifth-rate increase since December 2021. Canada, Brazil and Australia have also increased rates. European Central Bank is also planning to take such measures.

Situation in US
United States has cut rates to support the economy, in the aftermath of covid-19 pandemic in 2020. Fed has also increased the rates two times in 2022. It increased the rate by 0.25 percentage points in March and by 0.25 percentage point in May. Last time, the Fed had announced a rate hike of similar size in 1994. This move has made borrowing more expensive. It is likely to cool demand and slow down the economic activity.

 

Related Articles

Thiomargarita magnifica Bacteria

Thiomargarita magnifica Bacteria

Scientists have discovered a giant white bacterium named “ Thiomargarita magnifica Bacteria ” on rotting leaves in saline waters of red mangrove swamp in Guadeloupe in Lesser Antilles. How is this bacterium different? The average bacterium is commonly between 04 and 3...

‘Dak Karmayogi’ e-learning portal

‘Dak Karmayogi’ e-learning portal

On June 28, 2022, Minister of Communications Ashwini Vaishnaw launched ‘ Dak Karmayogi ’. It's ane-learning portal of Department of Posts. Dak karmayogi Dak Karmayogi portal has been launched with the aim of enhancing capabilities of departmental employees and Gramin...

EIU Global Liveability Index 2022

EIU Global Liveability Index 2022

The Economist Intelligence Unit( EIU) just launched its yearly ranking of supreme liveable cities of the world, and Global Liveability Index for 2022. Key Points The index highlights some significant changes as compared to Global Liveability Index for 2021. The EIU...