US Federal Reserve Raises Interest Rates To 16-year High With A Quarter Percent Increase

4th May 2023

The Federal Reserve bank of USA has raised interest rates again by a further .25 basis points to 5.25%.

The question now is will the Bank of England follow given that the Fed is still wanting inflation to come down and using interest rates to try and do that Similarly the Bank of England want to get inflation down aiming for 2 percent.

The Federal Reserve raised interest rates by a quarter percentage point and hinted it may be the final move in the most aggressive tightening campaign since the 1980s as economic risks mount.

The threat is that a further rise will push up mortgage, credit card and other loan rates again.

The Bank of England next announcement about interest rate is on 11 May 2023. Current rate of 4.25 percent is widely expected to rise to 4.50% with some analysts predicting up to 5% by the end of the summer.