Citi, Wells Spaco, BOA, etc. raise the basic interest rate on loans
The impact of the Feds 0.25%p rate hike
UK central bank raises interest rate for the third time in a row
Wall Street in New York, USA. [Yonhap News] Major U.S. banks are raising lending rates as the US Federal Reserve raises its benchmark interest rate for the first time in more than three years.
According to foreign media such as Reuters on the 17th, Citigroup, Wells Fargo, JP Morgan Chase, and Bank of America all raised the basic interest rate for loans from 3.25% to 3.5% from the same day.
Germanys Deutsche Banks US subsidiary also announced that it would raise the prime interest rate by 0.25 percentage points, like major Wall Street banks. The best interest rate is the loan rate applied to blue-chip companies. Based on this, the additional interest rate is added to determine the loan interest rate.
At the FOMC meeting held on March 15-16, the US Federal Reserve announced that it would raise the policy rate by 0.25 percentage points to 0.25-0.50% from the current level of 0.00-0.25%. This rate hike is the first in three years and three months since December 2018.
The Fed has also predicted up to seven rate hikes this year. To adjust for inflation, interest rate hikes are inevitable. The Fed has raised its forecast for US personal consumer spending inflation growth this year to 4.3% from 2.6% three months ago.
Meanwhile, the Bank of England, the central bank of the UK, announced on the 17th that it had raised the key interest rate by 0.25 percentage points to 0.75% at the Monetary Policy Committee meeting on the 17th. After raising interest rates for the third time in a row, the UK benchmark interest rate returned to pre-COVID-19 levels.