The minutes of the December meeting of the Federal Open Market Committee (FOMC) in the United States, which was published on Wednesday evening, revealed that most policymakers recognized the possibility of interest rates staying at their highest levels for longer than initially expected.
- where participants saw that the interest rate is likely to be at or near its peak for this tightening cycle.- Participants felt that upside risks to inflation had diminished.
- A number of participants highlighted the uncertainty about how long a restrictive policy should last, noting that prices for basic services continue to rise at a high pace.
- Participants stressed the importance of adopting a cautious and data-driven approach when it comes to making monetary policy decisions so that inflation shows signs of declining towards target 2.
- Circumstances may justify keeping the interest rate at the current level for a longer period.
