US Fed raises key interest rate amid stronger growth outlook
UAE central bank raises rates by 25 bps following US Federal Reserve's decision to hike rates by 25 bps
WASHINGTON: The Federal Reserve on Wednesday raised the key lending rate for the first time this year, citing a stronger outlook for economic growth, and hinted at a slightly more aggressive pace for hikes both this year and in 2019.
Newly-installed Fed Chairman Jerome Powell presided over his first meeting which raised the federal funds rate to 1.5-1.75 percent.
In its quarterly forecasts, Fed officials project the benchmark interest rate will end this year at 2.1 percent after two more hikes, unchanged from the December forecast, but will rise to 2.9 percent at the close of 2019, signalling three possible hikes.
The US 10-year Treasury yields, meanwhile, fell back to 2.90 per cent, near where it traded before the Fed's statement.
UAE central bank raises rates by 25 bps
Meanwhile, the United Arab Emirates central bank said on Wednesday that it was raising its repo rate by 25 basis points to 2.0 percent, and increasing interest rates on certificates of deposit by a similar margin.
Its decision followed the US Federal Reserve's decision to hike rates by 25 bps.
