FOMC raises interest rates to 2%
The Federal Open Market Committee (FOMC) increased its overnight interest rates by a quarter percentage points to 2% Wednesday and this move signaled that further rate hikes can be expected.
The increase was expected by traders and economists on Wall Street. Output appears to be growing at a moderate pace despite the rise in energy prices, and labor market conditions have improved, the FOMC said in a statement announcing its decision.
The interest rate hike can affect the fund moves in developing markets in which
Turkey takes place as well.
The euro/dollar parity stands at 1.2884 levels before the interest hike decision, but after the increase it rose up to 1.2900. At the same, dollar/yen parity regressed up to 107.19.
Economists believe that a possible interest rate hike in December will depend on the employment and inflation data of October as well as oil prices.