look news india
Mumbai: The Federal Open Market Committee (FOMC) of the US Federal Reserve decided to keep the interest rate unchanged for the fifth consecutive time at the end of its two-day meeting on Wednesday and also indicated the possibility of a quarter percent increase. The interest rate cut continues till the end of the current year. On the other hand, Swiss National Bank has reduced the interest rate by five percent while Bank of England has kept the interest rate intact.
The Federal Reserve wants clear signals that inflation is falling. The Federal Reserve has been given a target to bring inflation down to two percent.
At present the interest rate is between 5.25 to 5.50 percent. Expectations to reduce interest rates to 4.50 to 4.75 percent by the end of 2024 were also maintained.
An analyst said Federal Reserve Chairman Jerome Powell's statement signaled the beginning of interest rate cuts in June.
A strong labor market will not prevent interest rate cuts, but we await data that inflation is slowing, Powell told reporters after the meeting.
America's economic growth estimate for the current year has been increased from 1.40 percent to 2.10 percent.
Despite higher-than-expected inflation rates in the US, 10 of the Fed's 19 members are still likely to cut interest rates by a quarter percentage point by the end of 2024. Inflation rate in February was 3.20 percent while in January it was 3.10 percent.
An indication of reduction in interest rates was also given in the December meeting. Meanwhile, according to another report, the Swiss National Bank has taken a surprising step and reduced the interest rate from five percent to one and a half percent, while the Bank of England has maintained its interest rate at 5.25 percent.