The US Federal Reserve decided to raise interest rates by 25 basis points, as expected, to reach 5%, reaching the highest level since October 2007, in its meeting, the results of which were announced moments ago.

The interest statement issued by the bank stated that recent indicators point to a modest growth in spending and production, while employment numbers rebounded and achieved strong levels, and unemployment levels remained low, but inflation is still high.

The Fed indicated that it will monitor and evaluate the effects of monetary policy, and the committee will take into account the cumulative tightening of policy until reaching the 2% inflation target, and that it is ready to use all available tools to reach this goal.

With regard to the recent banking crisis, the Fed affirmed that the US banking system is sound and flexible, and that recent developments may affect economic activity, employment and inflation.

The US Federal Reserve sees a peak in interest rates in the range of 5-5.25% this year, while members did not discuss cutting interest rates this year.

The committee’s expectations came with a decline in unemployment rates to 4.5% this year from 4.6% in December estimates, and at 4.6% next year, while it sees growth at 0.4% in the current year compared to 0.5% in December estimates, and that it will rise to 1.2% next year and sees inflation.

At 3.3% in the current year and 2.5% in the next year, compared to 3.1% and 2.5%, respectively, in the December estimates.