The US Federal Reserve raised the base rate for the second time in a year

Until the end of 2018 there will be two more increases in the key rate The rate increase was the result of a change in the opinion of just one member of the Federal Open Market Committee. The US Federal Reserve System, following a two-day meeting on Wednesday, June 13, announced a decision to raise the base interest rate by 25 basis points - to 1.75-2.0%.

In the current year this is the second rate increase. In March, the bar rose 0.25 percentage points to 1.5-1.75% per annum.

The current rate increase was not unexpected. According to Interfax, now the Fed expects a total of four rate increases in 2018 (including the March and current) against the expected in March, three increases.

It is noted that this was the result of a change in the opinion of just one member of the Federal Open Market Committee (FOMC): now eight members of the committee consider that two more rate hikes are justified before the end of the year, and seven hold the view that another increase will be enough.

The forecast for 2019 provides for three rate hikes, and one more is expected in 2020.

Earlier in May, the US Federal Reserve retained the key rate at 1.5-1.75% per annum amid the strengthening of the labor market and a moderate increase in economic activity.