The central bank has tightened the monetary policy 11 times in just over a year and a half.
of the United States on Wednesday, the central bank decided for the second time in a row to keep its key interest rate unchanged.
The decision of the Open Market Committee, which decides on monetary policy, was unanimous.
In its statement, the committee considers interest rate increases still possible if the increase in consumer prices, i.e. inflation, does not slow down sufficiently.
The decision means that the key interest rate range is still 5.25–5.50 percent. The last time monetary policy was as tight was in 2001.
HS shows the governor of the central bank Jerome Powell of the press conference live at around 8:30 p.m.
Fast in order to tame inflation, the central bank has tightened monetary policy 11 times within a good year and a half. Last year, it resorted to an exceptionally large interest rate increase of 0.75 percentage points.
The sharpest inflation was in June of last year, when the rate of price increase was 9.1 percent. According to the central bank’s price stability objective, inflation must be two percent on average over a long period of time. In September, the inflation rate was 3.7 percent.
The tightening of monetary policy usually starts to slow down the rate of inflation after half a year and typically reaches its full effect after more than a year.
#Monetary #Policy #central #bank #key #interest #rate #unchanged
