Kathmandu. US Banks has increased the interest rate which affects the global stock market. The Federal Reserve Bank (US Fed) has raised policy rates by 25 basis points or 0.25 percent due to continued rising inflation. After the latest hike, benchmark interest rates in the US have moved to a range of 5.25 to 5.50 percent. This level reached 22 years ago i.e. 2001.

The US Fed announced a policy rate hike on Wednesday after a two-day review meeting. Since March 2022, the US Fed has taken steps to increase the benchmark interest rate in 11 of the 12 meetings held so far. After the last meeting, the Fed Reserve decided not to raise the interest rate, but the experts estimated that the interest rate may rise again in the US.

Benchmark interest rates in the US rose to a range of 5.25 percent to 5.50 percent overnight. This level of policy rates was last seen before the 2007 housing market crash. Earlier, in March and May of 2023, amid the banking crisis, the US federal government had raised interest rates by 25 basis points. However, these rates were held steady in June.

In a statement released by the Fed, the Federal Open Market Committee (FOMC) will continue to reduce its holdings in Treasury securities as previously announced. However, this process of raising interest rates in the US seems to be continuing. – Agency