Kathmandu, June 16
As part of the efforts to contain growing consumer costs, the US Federal Reserve has
announced the largest interest rate rise in over 30 years. The Federal Reserve has stated that its main interest rate would be raised by three-quarters of a percentage point to 1.5 percent to 1.75 percent.
This is the third such rise since March when inflation in the United States rose dramatically. At the same time, the economy’s level of uncertainty is likely to rise. The central bank expects the rate of borrowing by banks to reach 3.4 percent by the end of the year, according to a projection released following the meeting.
Higher public costs for securities, credit cards, and other loans might result as a result of the move. Central banks all around the world might fall into line, causing a major shift in the global economy. It may have an impact on businesses and families who have benefited for years from low-cost loans and borrowings.
