The U.S. central bank again quickly raised the key interest rate – interest rate hikes are also likely to continue

The US central bank again quickly raised the key interest

The US Federal Reserve raised the key interest rate by 0.75 percentage points. The goal is to curb inflation.

21:20•Updated 22:07

As expected, the US central bank Fed has raised its key interest rate by 0.75 percentage points. The increase is necessary to curb inflation, says the bank.

The interest rate range is now 3.00–3.25 percent, i.e. the highest since January 2008.

It was the third consecutive increase of 75 interest points.

The Central Bank estimates that interest rate hikes will also be necessary in the future.

– Inflation continues to rise rapidly. This reflects supply-demand imbalances due to the pandemic, high food and energy prices, and broader upward pressure on prices, the central bank said in a statement.

The increase in the key interest rate was immediately visible, for example, in the exchange rate of the dollar, which rose to its highest level against the euro in almost 20 years. The last time the dollar was this strong was in October 2002, just a few months after the single currency had been introduced in 12 EU countries.

Share prices turned lower on Wall Street after the announcement.

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