The Federal Reserve may raise interest rates by another 0.50% on December 14.
The Federal Reserve (FED) will meet on December 14 and is generally expected to raise interest rates by another 0.50%, or from the current target range of 3.75 to 4.00% for the prime rate to 4.25 to 4.50%.
The U.S. Consumer Price Index (CPI) for October increased 7.70% over the same month last year, while the core CPI increased 6.30% year-over-year. The market expects the Fed to slow down the pace of rate hikes, although it will continue to maintain the trend of rate hikes until the CPI index falls back to normal levels.
In addition, experts also predict that the European Central Bank will raise interest rates by 0.75% on December 15, the Bank of England may also raise rates by 0.75% on December 15, the Australian Federal Reserve may raise rates by 0.25% on December 6, and the Bank of Canada may raise rates by 0.50% on December 7.
The central banks of many major economies around the world continue to keep raising interest rates, and the Bank Negara in Malaysia is unlikely to suspend rate hikes, so it is generally expected that the Bank Negara will continue to raise interest rates two times in 2023, each time by 0.25%. The next monetary policy meeting of Bank Negara will be held on January 19.
