The US Federal Reserve left its interest rate unchanged in its June meeting yesterday. This was in line with market expectations and means interest rates in the US remain at 5.25%. The decision marked the first pause in tightening, after ten consecutive hikes that brought US borrowing costs to their highest level in approximately sixteen years.
Despite yesterday’s pause in tightening, the Fed signalled that this doesn’t mark the end of rate hikes, as rates may go to 5.6% by the end of 2023 if the US economy and high inflation don’t show any signs of slowing down.
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