What US interest rates hike means for global economy

Any monetary policy changes in the US cause knee-jerk reactions in global economies, with interest rates usually having great influence on global financial markets.PHOTO: COURTESY

Analysts and central bank bosses are still digesting the impact of the US Federal Reserve’s decision last week to raise interest rates. The Federal Open Market Committee (FOMC) raised the benchmark interest rate to 0.75 per cent.

Any monetary policy changes in the US cause knee-jerk reactions in global economies, with interest rates usually having great influence on global financial markets.