Markets perk up after Fed rate hike

Markets across Asia - including Singapore - rallied after the United States Federal Reserve raised its benchmark interest rate by a quarter-point.

The widely anticipated move comes amid rising confidence that the US economy is poised for stronger growth.

With the higher rate already priced into the market, investors were looking for indicators of how aggressive the central bank is likely to be over the rest of the year. This was the second rate increase in three months, with two more hikes expected this year.

Higher US interest rates will likely also push up rates on some consumer and business loans here.

SEE TOP OF THE NEWS: Asian markets ride high after dovish Fed rate increase

A version of this article appeared in the print edition of The Straits Times on March 17, 2017, with the headline 'Markets perk up after Fed rate hike'. Print Edition | Subscribe