A significant slowdown in the rate of interest rate hikes:
The US Federal Reserve raised interest rates by 0.25% in line with expectations to a level of 4.5%-4.75%.
The bank's announcement states that further interest rate increases are expected in the near future, in accordance with early expectations in the markets.
"Inflation has decreased slightly but remains high. The war between Russia and Ukraine still increases global uncertainty," the statement said.
However, the Fed said the US economy is enjoying "modest growth" and a strengthening labor market, with policymakers still "very attentive to inflation risks". to 2% over time," it said.
Inflation in the United States is in the process of moderating (for illustration), photo: AFP
The reason for the significant slowdown in the rate of interest rate increases is the relaxation in American inflation, which fell in December, for the sixth time in a row, and was expected to be at an annual rate of 6.5%.
Let's recall that in the summer the consumer price index in the USA reached its peak since the 1980s - more than 9%, after which it began to gradually decrease every month. The interest rate in the USA was raised accordingly and reached its current level in less than a year.
The market is now pricing in an additional interest rate increase of 0.2% in March, a maximum interest rate of 4.95% in June and the beginning of interest rate cuts in the second half of 2023.
Soon in Israel?
Professor Eran Yeshiv, from Tel Aviv University and chairman of Elder Mortgage's expert forum: "The expectation in the market was for an interest rate increase of a quarter of a percentage point by the Fed. Although the American economy shows signs of a slowdown in inflation and is not entering a recession as many feared, but The policy at the Fed has already announced that they intend to continue the policy of raising interest rates.
"The Bank of Israel's next interest rate decision is expected to be only on February 20, and Bank Hohat has to decide whether to continue following the Fed as it has done for the past three years. At this moment, it seems that the Governor of Israel will not raise the interest rate, because the conditions now do not require it. However, it should be noted that There is currently a great deal of uncertainty in view of the unprecedented political developments, so one must be very careful in making predictions now.'
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