Fed raises interest rates to highest in 22 years.

The US central bank has raised interest rates to the highest level in 22 years as it fights to stabilise prices in the world's largest economy.

The decision lifted the Federal Reserve's influential benchmark rate to a range of 5.25% to 5.5%.

It marked the eleventh increase since early 2022, when the Fed started raising borrowing costs to try to cool the economy and ease price inflation.

The Fed offered few firm clues as to what it might do next.

"We're going to be going meeting by meeting," bank chairman Jerome Powell said at a press conference following the announcement.

Wednesday's decision came ahead of central bank meetings in Europe and Japan.

In the UK, where inflation was 7.9%, the Bank of England is widely expected to raise its key rate at its next meeting on 3 August from the current 5%.

In the US, some analysts said the Fed had done enough.

Inflation in the US was 3% in June. That was down from a peak of more than 9% last year, when prices were rising at the fastest pace in four decades.

Source: www.bbc.com

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