New Delhi. The general public may once again get a big shock from the banks. This is because the US Federal Reserve Bank has once again increased its benchmark interest rates. After this decision, the stock markets of America have closed with a huge decline. It is being said that this decision has been taken to reduce inflation. The effect of this decision of the US Federal Reserve Bank can also be seen in India. It is feared that the Reserve Bank of India may once again be forced to increase the repo rate to control inflation. If this really happens, then once again the burden of increased EMI will come on the public.
Interest rates increased for the fourth time
The US Federal Reserve Bank has increased its interest rates by 0.75 percent. Which is at the highest level in 15 years. With the increase in interest rates, it has been increased from 3.75 per cent to 4 per cent. Let us tell you that this is not the first time that the US Fed has increased the interest rates. This has been done for the fourth time in a row and for the sixth time in a year. After this decision of the US Fed, the stock market has suffered a major setback. The market has closed with a downtrend. On the previous day, the Premier Index of the American Stock Exchange closed with a 505 point decline, Nasdaq Composite Index declined 3.36 percent, S&P 500 Index declined 96.41 points. Last Wednesday has been very bad for the US stock market.
Interest rate may come down in future
The US Federal Reserve Bank has issued a statement on this decision. Fed Chairman Jerome Powell said that this time the benchmark interest rates have been increased but relief will also be given soon. There is a need to move rates to wind down the growth drive but to balance things out, going ahead, a modest moderation in rate hikes will be considered. However, this will happen only when the inflation rate and growth rate are balanced.