The Federal Reserve Board, the central bank of the United States, decided to raise interest rates by 0.25% at a meeting held until the 1st.
The Fed decided to raise interest rates by 0.75% four times in a row until its November meeting last year, which was unusually large.
This is the second consecutive reduction in interest rate hikes.
What is the history of Fed policy?
In March 2020, when the infection of the new coronavirus spread, the FRB implemented emergency interest rate cuts to 0.5% and 1% one after another in order to suppress the turmoil of the financial market.
introduced a zero interest rate policy.
Since December the year before last, the consumer price index has risen above 7% and inflation has accelerated.
We will switch to monetary tightening.
It was the first rate hike in three years and three months.
Furthermore, at the meeting in May last year, it was decided to raise the interest rate by 0.5% for the first time in 22 years and to start reducing financial assets called "quantitative tightening".
However, even after that, there were no signs of an end to inflation, and the BOJ decided to raise interest rates by 0.75% four times in a row from June until the November meeting.
After that, the November consumer price index was announced to rise by 7.1%. Decided to scale back the rate hike to 0.5%.
This is the first time that the rate hike has been reduced since the BOJ lifted its zero interest rate policy in March last year and began raising interest rates.
Furthermore, the rate of increase in the consumer price index in December fell below that of the previous month, dropping to the 6% level for the first time in about a year. The view was getting stronger.