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Watching Out for Era of High Interest Rates

Oleh
Agus Herta Sumarto
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As expected, the United States Federal Reserve (the Fed) – the US central bank – the raised its benchmark interest rate by 25 basis points (bps) in December. With this increase, the Fed interest rate now falls within the 2.25-2.50 percent range.

The rate hike was the fourth in 2018 and the ninth since 2015, when the normalization policy was implemented. The yearend increase in the Fed interest rate is unlikely to be the last.

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