The US Federal Reserve raised the interest rates on the dollar with an expected percentage of 0.50% from the previous rate of 0.25%.
Since December 2008, the Federal Reserve maintained the interest rates’ levels between 0.00% and 0.25%, considered the longest consistent rate in the economy’s modern history.
The interest rates set by the US Federal Reserve are a significant indicator that widely impact local economy. The officials of central banks of each country meet in order to determine the key interest rate on loans, which effects the interest rates applied on loans offered by commercial banks to customers and investors.
The central bank’s decision in identifying the key interest rate depends on the economy’s needs and based on that, the officials raise or reduce the interest rates in their meetings.