The main event of the previous week for the global investment community was the decision of the US Federal Reserve System (FRS) to raise the federal funds rate. The decision to raise the rate 25 basis points to a target rate of 0.25-0.50% per annum was made as a result of a meeting held on 15-16 December. The decision was unanimous and coincided with expectations of economists and market participants. The schedule of forecasts made by FRS top officials indicates that the federal funds rate will be increased four times in 2016 and monetary policy will get tougher at a moderate pace over 2017-2018.

Financial markets survey 21.12.2015