The US Federal Reserve (Fed) increased interest rates by 25 basis points in March for the sixth time since 2015. This simply means interest rates in the US have increased by 0.25%, and are currently hovering between a range of 1.50% and 1.75%.
Further, the Fed signalled there would be up to two more rate hikes in 2018, and it raised its forecast on continuing rate hikes through to 2020.
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Declining prices in bond market
Higher borrowing costs
Increase price in goods and services
Large implications on returns due to interest rate hike
Lesser disposable income
Lesser spending power dampen inflation level
More expensive US by-pass products
Rising operational costs and mortgage repayments
Singapore dollars pegged to a basket of currencies
Singapore exchange rate based on monetary policies
US dollars appreciation
US dollars depreciated