US Federal Reserve Raises Interest Rates, Calming Investors but Uncertainty Remains
KONTAN.CO.ID - JAKARTA. Investors can now breathe a sigh of relief as the United States Federal Reserve's (The Fed) interest rate direction becomes clearer. On Wednesday (22/3) local time, The Fed raised its benchmark interest rate by 0.25% to 4.75%-5% and stated that it may only need one more rate hike this year, projecting a rate level of 5.1% by the end of 2023. The interest rates are then predicted to remain stagnant or even fall back to 4.1% in 2024.
According to Nicodimus Kristiantoro, the Research & Consulting Manager of Infovesta Utama, this increase in interest rates was in line with consensus expectations and realized interest rates were lower than the market projections before the emergence of the Silicon Valley Bank (SVB) case, which reached 50 bps. This development may help reduce market anxiety regarding The Fed's interest rates. However, there are still concerns that the increase in interest rates will put pressure on bank liquidity, as experienced by SVB, causing the majority of Asian markets to respond negatively to The Fed's decision to raise interest rates. US banking stocks also fell.
Ini Artikel Spesial
Agar bisa lanjut membaca sampai tuntas artikel ini, pastikan Anda sudah berlangganan atau membeli artikel ini.
Sudah berlangganan? MasukKontan Digital Premium Access
Business Insight, Epaper Harian + Tabloid, Arsip Epaper 30 Hari
Rp 120.000
Business Insight
Hanya dengan 20rb/bulan Anda bisa mendapatkan berita serta analisis ekonomi bisnis dan investasi pilihan
Berlangganan dengan Google
Gratis uji coba 7 hari pertama. Anda dapat menggunakan akun Google sebagai metode pembayaran.
