News analysis

Fed’s higher-for-longer rate policy will hit borrowing costs in Singapore

US Federal Reserve chairman Jerome Powell said it would take substantially more evidence to give confidence that inflation is falling. PHOTO: EPA-EFE
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SINGAPORE - The US Federal Reserve on Wednesday raised interest rates by 50 basis points to a 15-year high and, more significantly, signalled that rates will have to move up more than previously anticipated and stay there for longer.

The United States central bank’s Federal Open Market Committee (FOMC) raised its benchmark rate to a range of 4.25 per cent to 4.5 per cent, from 3.75 per cent to 4 per cent previously – a move widely expected. 

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