It is a decision that will have repercussions on the global economy, and will therefore be watched closely. The US Federal Reserve – also called the Fed – is expected to announce a further increase in its key rates on Wednesday, December 14. The Swiss National Bank and the European Central Bank will meet the following day. Decisions might be communicated immediately.
Why it matters. Policy rates are the rates at which commercial banks can borrow money from the central bank. A rise in interest rates therefore has repercussions on household and corporate loans, which leads to a slowdown in economic activity. The goal is to reduce pressure on prices.
