Al-Masry to “Al- Anbat ”: The interest rate hikes by the US Federal Reserve will continue until the end of 2024

Neveen Al Jarrah

What are the implications of the US Federal Reserve's decision on interest rates in Jordan?

Al-Masry: The Central Bank will raise the interest rate, similar to the Federal Decision  Al - Anbat - Omar Al-Kaabneh

After the US Federal Reserve announced, on Wednesday, the largest interest rate increase in nearly 30 years by three quarters of a percentage point (0.75), what are the implications of this decision on interest rates in Jordan and will the Central Bank raise its interest rates similar to the American decision to talk more about this subject, Al - Anbat spoke with the economic analyst, Dr. Jamal Al-Masry, who confirmed that the Central Bank will raise the interest rate, similar to the federal decision, and the reason for this is due to the dinar’s link with the US dollar. It is in US dollars.

He added that the Fed's decision to raise the interest rate (0.75) points was not unanimous, as it was expected to raise it (0.100) points, and this is what US Treasury Secretary Janet Yellen demanded to reduce the amount of inflation in the United States of America, noting that raising the interest rate will raise the interest rate. America’s debt ratio, but it is forced to raise the interest rate to eliminate inflation, indicating that this rise is shy compared to the inflation rate, which reached 5.2%. Al-Masry expected that these interest rate hikes by the US Federal Reserve will continue until the end of 2024.

On the impact of the interest rate on Jordanian borrowers, Al-Masry indicated that they will be affected by this rise, pointing out at the same time that after the economic crisis after 2008, interest rates became between zero and low, which affected attracting investment and growth, stressing that development loans provided by the Central Bank will not be affected by This raise, and on the other hand, the Egyptian states that depositors are the biggest beneficiaries of the US Federal Reserve's raises.