After the last increase on September 21, the average interest rate was 3.125% (Getty)
The US Federal Reserve (Central Bank) has adopted a tightening monetary policy since the outbreak of the Ukraine war, and the historical jumps in inflation that caused it, which produced a widespread wave of inflation that threatens the world with a deep recession.
Within the framework of this policy, the Central Bank has approved 5 interest rate increases in 2022 so far, starting with a 0.25% increase on March 16, followed by a 0.5% increase on May 4, and then on June 15 by 0.75%, and the same percentage in July 27 and September 21, until interest rates reached between 3% and 3.25%.
But what are the most prominent fluctuations in interest rates since 1980, according to data from “Wright Bank” with some illustrative modifications from “The New Arab”?
In 42 years, the highest interest rates could be observed in May 1981, when they averaged 19.1%, and the lowest was 0.05% in March 2020.
In the eighties of the twentieth century, specifically in 1981, the average interest rates recorded 19.04%, before declining in the end to 12.37%, and continued its decline to 8.51% at the beginning of 1983, before rising to 11.64% in July 1984. Soon The interest rate fell to 5.89% in August 1986, and gradually increased to 9.84% in March 1989.
In the 1990s, the average interest rate had fallen to 2.92% in late 1992, and had long settled at fluctuating levels within a reasonable range, before hitting 6.5% in July 2000.
With the start of the third millennium, the average interest rate plunged to a low level of less than 1% to record 0.98% in late 2003, before reaching 5.25% in late 2006, to fall again to 0.16% in late 2007, and remains almost stable at 0.15% in early 2009.
The path of stabilization of interest at low levels that lasted for years and recorded 0.12% in October 2015, to rise again to 2.4% at the beginning of 2019, and return to very low levels at 0.05% in March 2020, and settled at low levels until 2022, which witnessed A series of interest rate hike decisions to record an average of 3.125 on September 21, 2022.