The US Federal Reserve system (FRS) has increased the range of the key interest rate by a quarter of percentage rate to 0.25-0.5% per annum, RBC-Ukraine reports.
“The Committee decided that the labor market situation has significantly improved this year and is confident that inflation will speed up to 2% in the medium term”, as the FRS statement says.
FRS has also set the interest rate, which it pays to banks under surplus reserves, at 0.5% rate and informed that it will offer up to 2 trillion US dollars during reverse repo transaction.
FRS rate is the interest, under which US banks take out loans from the central bank of the country. Since December 2008 it was zero – 0-0.25%, BBC reports.
The current raise, as analysts consider, shows the confidence of the Federal Reserve in US robust economy after recession in 2008.
