United States makes biggest interest rate rise in almost 30 years

The US central bank has announced its biggest interest rate rise in nearly 30 years as it ramps up its fight to rein in soaring consumer prices.

The Federal Reserve said it would increase its benchmark rate by three-quarters

of a percentage point to a range of 1.5% to 1.75%.

The rise, the third since March, comes after inflation surged unexpectedly last month.

More rises are likely, the bank said.

Forecasts released after the meeting showed officials expect interest rates could reach 3.4% by the end of the year, a move that will ripple out to the public in the form of higher borrowing costs for mortgages, school loans, and credit cards.

As central banks around the world take similar steps, it marks a massive change for the global economy, where businesses and households have enjoyed years of low-cost loans.