Federal Reserve

Fed raises rates by 25 basis points

PUBLISHED : Thursday, 01 July, 2004, 12:00am
UPDATED : Monday, 30 May, 2016, 2:05pm

The Federal Reserve raised US interest rates for the first time in four years yesterday. The rise of 0.25 per cent is the first of a likely series of increases to keep inflation at bay.

The decision moves the benchmark federal funds rate - which affects credit costs throughout the economy - to 1.25 per cent, and ends an easing cycle that began in 2001 and took the key rate to 1 per cent, its lowest level since 1958.