Skip to content

How US interest rate hike will affect developing economies

Washington

When the Federal Reserve raises interest rates – as it did Wednesday – the impact doesn’t stop with US homebuyers paying more for mortgages or Main Street business owners facing costlier bank loans.

The fallout can be felt beyond America’s borders, hitting shopkeepers in Sri Lanka, farmers in Mozambique, and families in poorer countries around the world. The impacts abroad range from higher borrowing costs to depreciating currencies.

“It will put pressure on all types of developing countries,” said Eric LeCompte, executive director of the Jubilee USA Network, a coalition of groups seeking to reduce global poverty.

Leave a Reply

Your email address will not be published.