The US banking sector is in turmoil after the collapse of two banks. In this situation, if the interest rate is increased again, there may be more instability in the banking sector – despite the fear that the central bank of the United States, the Federal Reserve, has increased the interest rate again.
The Federal Reserve has announced a new interest rate hike of 0.25 points. The US central bank claims that the banking sector is in a strong position.
But they warned that banks that have closed could be adversely affected in the coming months.
Federal Reserve Chairman Jerome Powell said the Fed is focused on its fight against inflation.
The Bank of America has been raising interest rates since last year to keep the cost of living and the prices of everyday goods stable. But the sharp rise in interest rates since last year has put pressure on the banking system.
Interest rates increased this month in the collapse of two US banks named Silicon Valley and Signature. It is feared that the prices of the bonds that the banks have bought will fall due to the rise in interest rates.
Meanwhile, the European Central Bank raised its key interest rate by 0.5 percent last week.
On the other hand, the Bank of England will decide on its own interest rates today (March 23).
Bangladesh Time: 1030 hours, March 23, 2023
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