US Central Bank: Interest rate hike to 75 basis points still pending

Susan Collins, president of the Federal Reserve Bank of Boston and a member of the US Federal Reserve (central bank), said the base interest rate has yet to be determined.

“But moving to 75 basis points is still being discussed,” she added, according to Bloomberg News.

“Historically, 50 basis points has been considered a significant increase, and we’re in the range where most people see us as an area for tightening,” Collins said in an interview with CNBC.

“We do not see clear and consistent evidence of the stability in labor markets, the dynamics that we would like to see,” she said.

“I see no clear and substantial evidence that headline inflation will decrease at this point,” she added.

On November 2, the Federal Reserve raised the federal funds rate by 75 basis points, another significant increase aimed at curbing inflation.

It should be noted that the US Federal Reserve raised the main interest rate 6 times this year, the last four times by 75 basis points, bringing the interest rate to 3.75-4%.

Source: agencies