Consumers will pay more to borrow money after the US Federal Reserve’s decision on Wednesday to raise interest rates by another three quarters of a percentage point to stem the disruptive surge in inflation, financial experts say.
The 75 basis point increase brings the Federal Open Market Committee's short-term rate between 3.75 per cent and 4 per cent, the highest level in 14 years.
This is the Fed's sixth interest rate increase in a row this year to combat inflation, which is at historic levels, and restore price stability.
Fed officials have stressed that they need to act aggressively to tamp down inflation, which currently stands at 8.2 per cent.
The headline Consumer Price Index (CPI) in the US increased by 0.4 per cent in September, up 8.2 per cent from a year earlier.
The core CPI, which excludes food and energy, increased by 6.6 per cent from a year ago, the highest level since 1982, according to Labour Department data.
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