In the United States raised the basic discount rate

The Federal reserve raised the discount rate from 0.50-0.75% to 0.75 to 1.0 percent.

In the message the fed noted that the move is partly prompted the acceleration of inflation and the improvement in the U.S. labor market, reports Deutsche Welle.

According to the head of Department, Janet Yellen, the fed expects that the unemployment rate in the U.S. will continue to decline and will remain low in subsequent years.

“Our simple message: the economy is doing well,” she said.

See also:

The national Bank left unchanged the interest rate

This is the second increase in the base rate over the past three months and the third in the last two years: the first rate hike took place in December 2015and the second in December 2016. In 2017 the discount rate will increase twice more – each time by 0.25%.

Until 2015, the fed raised rates in 2006. Then, with the advent of the mortgage and the ensuing financial crisis, the fed for the first time in the history of America has reduced the rate (i.e. the interest rate at which commercial banks borrow money from the regulator) to almost zero.

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