(CNS): The US Federal Reserve has again raised interest rates by three-quarters of a percentage point as it battles the worst inflation in 40 years. Cayman banks are expected to follow suit, pushing up local lending base rates to 7%. Fed Chair Jerome Powell said the pace of hikes could soon slow down but he cautioned that there remains extensive uncertainty about how high rates will need to go. This is the fourth three-quarter-point increase in a row.
The announcement came at a news conference following two days of meetings among members of the Federal Open Market Committee. Powell spoke of the importance of price stability and said that increases would continue until inflation is reduced to around 2%.
Following the 0.75% hike in September, several local banks increased rates within a matter of days.