In its continued battle against inflation, the Fed increased the benchmark interest rate to the highest level in 15 years. The Federal Open Market Committee voted to boost the overnight borrowing rate, taking it to a targeted range between 4.25 per cent and 4.5 per cent. Along with, it gave the indication to keep the rates higher through 2023, with no reductions until 2024.
“After the US Fed has raised its policy rates the Indian Rupee which was already falling has further slipped to a record low against the US Dollar. Such a scenario has reduced the appeal of domestic assets back in India and made the Dubai real estate market more attractive for the Indian investors keen to either live, work or trade in the world’s safest city,” said Rizwan Sajan, Founder and Chairman, Danube Group, adding that already the growing trend of existing residents investing in property and the golden visa benefits have lifted the investors sentiments several notches higher in UAE.
Undoubtedly, when the world economies increases interest rates too quickly, economic growth of the developing nations may get slow, or in the long run it can give way to recession. The Fed move is an alarm bell though there are no short-term concerns, the global slowdown due to this may hurt the economy beginning next fiscal.