Central banks of different countries are continuously increasing the interest rates to prevent rising inflation across the world. Once again the Federal Reserve has raised interest rates by 0.25 percent. On Wednesday, Fed Reserve chief Jerome Powell announced an interest rate hike. After this announcement, the new interest rate will increase from 4.5 percent to 4.75 percent. Let me tell you, even before this, there has been an increase in the interest rates many times.
It is too early to say victory in the war against inflation
Jerome Powell, head of Phase Reserve, said it would be an understatement to say that we have won the war against inflation. He has said in the press conference that the Fed Reserve is keeping a close watch on the job data. However, during this time he has clarified one more thing that do not expect any interest cut in 2023. However, some agencies say inflation will come down faster than the Fed anticipates.
Will rates exceed 5 percent?
Responding to a question, Jerome Powell said that the Federal Reserve would try to keep benchmark index interest rates below 5 percent. This can be considered as a sign. That there is hardly any increase in interest rates in the coming times.
What will be the effect on India?
Ever since the Fed Reserve has started increasing the interest rates, since then the Reserve Bank of India has also started increasing the repo rate. At present, the repo rate is 6.25 percent. In which an increase of 0.25 percent can be seen in the coming time. The good thing from the government’s point of view is that the retail inflation rate has remained below 6 per cent for the second consecutive month. Apart from this, negativity can be seen in the stock market after the increase in interest rates by the US Fed.