US Rates Rise December 21, 2015 12:00 am The Federal Reserve has raised US base rates by a quarter of a percent to 0.5%. Although not much in itself, the move sends a signal on the direction of policy that will have implications in the UK. The US base rate has been at or below 0.25% since the end of 2008 as a loose monetary policy was adopted to help prevent recesssion after the global financial crisis. With the American economy growing again, the Federal Reserve wants to return interest rates back to a more ‘normal’ level. As the US raises rates (albeit slowly) there will be pressure for the UK to follow, as our economy is also showing growth. The increase in the Federal Reserve rate has already help strengthen the Dollar – making imports into the US more competitive.
