Federal Reserve Rate Hike: After four years, the central bank is going to increase its policy interest rates this month.
After this, central banks around the world can increase interest rates. The effect of increasing the interest rates of central banks will be on your home and loan EMI (Home and Auto Loan EMI). Let’s know the details.
Federal Reserve Rate Hike: There is another bad news amid the ever-increasing inflation. This time the US central bank Federal Reserve is going to give a big blow. The Federal Reserve may announce a hike in interest rates this month.
The head of the US central bank, Jerome Powell, this month announced a hike in policy interest rates. Let us tell you that policy interest rates will be increased for the first time after four years.
This change taking place after four years in the US central bank will have an impact worldwide. After this, central banks around the world including the Reserve Bank of India (RBI) can increase interest rates.
The increase in the interest rates of the central banks will have a direct effect on your home and its EMI (Home and Auto Loan EMI). That is, after increasing the interest rates, your MI will also increase.
Interest rates will increase for the first time since 2018
Powell said in a statement in the US Parliament that the Federal Reserve will start increasing interest rates from this month.
Let us tell you that the possibility of this move of the Federal Reserve, troubled by the ever-increasing inflation in America, was already being expressed. After the year 2018, the Federal Reserve will increase interest rates.
Meeting to be held on 15-16 March
However, Powell did not indicate how fast the US central bank would raise interest rates. But, it is expected that in the meeting of the Federal Reserve on March 15-16, 2022, a decision can be taken to increase the standard short-term interest rates.
Apart from this, let us tell you that if this increase happens, then the problems of the common people will increase further amid the record rise in crude oil and rising inflation.
